Professional Documents
Culture Documents
Prepare a budget for production of (a) 8000 units (b) 6000 units (c)
indicate cost per unit both the levels. Assume that the administrative
expenses are fixed for all levels of production.
5. From the following particulars, find the (a) material cost variance (b)
material usage variance and (c) material price variance.
Quantity of materials purchased 3000 units
Value of materials purchased Rs.9000
Standard quantity of materials 25 units
required per ton of finished product
Standard rate of materials Rs. 2 per unit
Opening stock of materials Nil
Closing stock of materials 500 units
Finished production during the 80 tons
period
b) What are the limitations of break even point? Explain any four.