Shanell Industrial Limited makes and sells one product, which has the following standard variable production costs per unit.
Rs.
Direct materials cost (2 kg at Rs.25 per kg) 50
Direct labour cost (3 hours at Rs.40 per hour) 120
Variable production overhead costs (Rs.10 per labour hour) 30
The budgeted selling price per unit is Rs.400 for the coming two years. The production
and sales budgets for the next two years are as follows: