Answer to Question #329703 in Management for prathyusha

Question

a) The production costs of a factory are given as follows: Rupees Direct Wages 90,000 Direct Materials 1,20,000 Production Overheads: Fixed 40,000 Variable 60,000 During the forthcoming year it is anticipated that: a) Average rate for direct labour remuneration will fall from Rs.0.90 per hour to Rs.0.75 per hour. b) Production efficiency will be reduced by 5%. c) Price per unit of direct material and of other materials and services which comprise overheads will remain unchanged. d) Direct labour hours will increase by 33.33%. Draw up a budget.