The budgets for manufacturing overhead of a concern for two levels of activity were as follows: Particulars Capacity Level 5,400 units (60%) 6,300 units(70%) Direct material Direct wages Production overhead Administration overhead Selling and distribution overhead Rs.37,800 16,200 37,600 31,500 42,300 Rs. 44100 18,900 41,200 31,500 44,100 Total cost 165,400 179,800 Profit is 20% of selling price. 

Required: A budget based on a level of activity of 50% which should show clearly the contribution which could be expected.

Answer rating: 100% (QA)

To prepare a budget based on a level of activity of 50 and determine the expected contribution we ne... View the full answer