Calicut University 2006 Certification CWA/ICWA Institute Of Cost and Works Accountants Of India, - Question Paper

Summarised budget is provided below:

Particulars Amount
(Rs. in lakh)

I. Sales 150.00
II. Direct Materials 36.50
Direct Labour 22.82
Direct Expenses 8.68
III. Semi-Variable Expenses:
Repairs & Maintenance 5.30
Indirect Labour 7.70
Supervision 6.00
Heating & Lighting 3.00
IV. Fixed Expenses:
Salaries—Managerial 9.50
Rent, Rates & Taxes 6.60
Depreciation 7.40
Audit Fees 6.50
V. Total Cost of Sales 120.00
VI. Budgeted Profit 30.00

Construct a Flexible Budget for 50%, 75% and 90% capacity utilization, showing (a) Variable & Semi - Variable cost (b)
Cost of Sales and (c) Profit — with the help of the subsequent assumptions:
(i) Fixed expenses remain constant at all levels of activity.
(ii) Semi - variable expenses remain constant ranging from 45% and 64% capacity, increasing by 10% ranging from 65% and
80% capacity, and by 20% above 80% capacity.

Earning:   Approval pending.