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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