Avsar Limited has extracted the following budgeting details for the year to

30 September 2013:

1. Sales: 4000 units of V at £500 per unit

7000 units of R at £300 per unit

2. Materials usage (units):

3. Raw material costs (per unit):
£
O1 .............8
I2 .............6
L3 .............3
4. Raw material stocks:

5. Finished stocks:

6. Direct labour:

7. Variable overhead:

8. Fixed overhead: £193,160 (to be absorbed on the basis of direct labour hours).

Required:
(a) Prepare the following budgets:
(i) Sales;
(ii) Production units;
(iii) Materials usage;
(iv) Materials purchase;
(v) Production cost.
(b) Calculate the total budgeted profit for the year to 30 September2013.

Transcribed Image Text:

Raw material 01 し3 12 10 12 15 Units L3 Opening stock Closing stock οι 1300 1400 12 1400 1000 200 Units Opening stock Closing stock 110 120 90 150 Product Budgeted hours per unit Budgeted hourly rate (&) 10 12 Product Budgeted hourly rate (£) 10