Prepare a flexible budget for Oman Electro-Mechanical Company for the year 2020. The company has provided...

Prepare a flexible budget for Oman Electro-Mechanical Company for the year 2020. The company has provided the following production data for the production of 10,000 units. Table Q5 shows the budgeted expenses for the specified production output. Based on the information given, you are required to prepare a budget for a production of 15,000 units for the same product of the company

Table Q5

Items	Amount (OMR)
Direct materials	4,576
Direct labor	2,029
Variable overhead expenses	2,059
Fixed overheads	1,611
Selling expenses (20% fixed, 80% variable)	1,681
Administration expenses (fixed for all level of production)	386
Distribution expenses (30% fixed, 70% variable)	489

Expert Solution

Below is the calculation & budget for reference:

keosha answered 3 months ago

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