Prepare a flexible budget for overheads at 50%, 60%, and 70% capacities, given that at 60% capacity, direct labour hours are 1,86,000.

To prepare the flexible budget for overheads, we first need to classify each overhead item into fixed, variable, or semi-variable components and determine their rates or fixed amounts based on the given 60% capacity data. Step 1: Calculate Direct Labour Hours for each capacity. Given direct labour hours at 60% capacity = 1,86,000 hours. At 50% capacity: (50)/(60) × 1,86,000 = 1,55,000 hours At 60% capacity: 1,86,000 hours At 70% capacity: $7060