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This image presents a manufacturing budget problem for a company, asking for a flexible budget and profit forecast at different production capacities (60%, 75%, and 100%). Here's a breakdown of the steps to solve this:

### 1. **Fixed Expenses** (remain constant at all production levels):
   - Wages and Salary: Rs. 84,000
   - Rent and Rates: Rs. 56,000
   - Depreciation: Rs. 70,000
   - Estimated Expenses: Rs. 90,000
   - **Total Fixed Expenses**: Rs. 3,00,000

### 2. **Semi-Variable Expenses** (increase with production level):
   At 60% Capacity:
   - Maintenance Charge: Rs. 25,000
   - Indirect Labour: Rs. 99,000
   - Sales Dept. Salaries: Rs. 29,000
   - Other Administrative Expenses: Rs. 26,000
   - **Total Semi-Variable Expenses at 60%**: Rs. 1,79,000

   **Adjustment for 75% Capacity**:
   - Semi-variable costs increase by 10% between 60% and 75%:
     \[
     \text{10% increase} = 1,79,000 \times 1.10 = 1,96,900
     \]

   **Adjustment for 100% Capacity**:
   - Semi-variable costs increase by 20% between 80% and 100%:
     \[
     \text{20% increase} = 1,79,000 \times 1.20 = 2,14,800
     \]

### 3. **Variable Expenses** (proportional to capacity):
   At 50% capacity:
   - Materials: Rs. 24,000
   - Labour: Rs. 2,56,000
   - Chargeable Expense: Rs. 38,000
   - **Total Variable Expenses at 50%**: Rs. 3,18,000

   **Adjustment for 60% Capacity**:
   - Scale up to 60%:
     \[
     \text{Variable Expenses at 60%} = 3,18,000 \times \frac{60}{50} = 3,81,600
     \]

   **Adjustment for 75% Capacity**:
   - Scale up to 75%:
     \[
     \text{Variable Expenses at 75%} = 3,18,000 \times \frac{75}{50} = 4,77,000
     \]

   **Adjustment for 100% Capacity**:
   - Scale up to 100%:
     \[
     \text{Variable Expenses at 100%} = 3,18,000 \times 2 = 6,36,000
     \]

### 4. **Sales at Different Capacities**:
   - 60% Capacity: Rs. 12,00,000
   - 75% Capacity: Rs. 14,00,000
   - 100% Capacity: Rs. 17,00,000

### 5. **Calculation of Profit**:
   Profit = Sales - (Fixed Expenses + Semi-Variable Expenses + Variable Expenses)

   - **At 60% Capacity**:
     \[
     \text{Total Expenses} = 3,00,000 + 1,79,000 + 3,81,600 = 8,60,600
     \]
     \[
     \text{Profit} = 12,00,000 - 8,60,600 = 3,39,400
     \]

   - **At 75% Capacity**:
     \[
     \text{Total Expenses} = 3,00,000 + 1,96,900 + 4,77,000 = 9,73,900
     \]
     \[
     \text{Profit} = 14,00,000 - 9,73,900 = 4,26,100
     \]

   - **At 100% Capacity**:
     \[
     \text{Total Expenses} = 3,00,000 + 2,14,800 + 6,36,000 = 11,50,800
     \]
     \[
     \text{Profit} = 17,00,000 - 11,50,800 = 5,49,200
     \]

These steps outline how the budget and profit forecast are prepared at different levels of production.

Would you like further details on any of these calculations or clarification on a specific step?

### Related Questions:
1. How do variable expenses differ from fixed expenses in budgeting?
2. What factors influence semi-variable costs in a production environment?
3. How does the increase in capacity affect variable expenses?
4. What role do fixed costs play in profit forecasting?
5. How can companies optimize costs when scaling production to higher capacities?

### Tip:
In flexible budgeting, understanding how costs behave at different production levels helps in better decision-making, especially in maximizing profit while controlling costs.

Prepare a flexible budget for half-year ending and forecast the profit at 60%, 75%, and 100% production levels based on the given manufacturing data.

Learn how to prepare a flexible budget for half-year ending and forecast profits at different production levels (60%, 75%, and 100%). This solution covers cost accounting concepts such as fixed, semi-variable, and variable expenses, and includes percentage adjustments for capacity scaling.

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