Question: please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image)

please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image) Please provide answer in text (Without image)

The ANC company have access to the following information to prepare for the budget.

Direct Materials: Cost RM1 per kg, and required amount per unit is 2.5kg. The number of hours workers require to finish a product is 2 hours. The direct labor rate is RM5.00 per hour. Production also require 2 machine hours per unit. Manufacturing Overheads Cost are estimated and allocated as follows:

variable Overheads Total Estimate Cost ($) Allocation Basis
Cleaning 18,000.00 Direct Labor Hours
Maintenance 12,000.00 Machine Hours
Supervision 24,000.00 Direct Labor Hours

The Following Fixed overheads were also estimated

Fixed Manufacturing Overheads Total Estimated cost $
Insurance 36,000.00
Advertising 14,000.00
Depreciation 10,000.00

Administration Cost Total Estimate Cost $
Managers Salary 108,000.00
Utilities in office 12,000.00

Questions :

Prepare the budget net operating income for the company.

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