At the beginning of 2004, Beal Company adopted the following standards:

Direct Material (3 Kg @ 2.50 per Kg)                       7.50

Direct Labor (5 hours @ shs. 7.50 per hour         37.50

Factory Overhead:

               Variable (shs.3.00 per direct labor hour) 15.00

              Fixed (shs.4.00 per direct labor hour       20.00

              Standard cost per unit                                   80.00

Normal Volume per month is 40,000 direct labor hours. Beal’s January 2004 budget was based on normal volume. During the month, Beal produced 7,800 units with records indicating the following: Direct materials purchased    25,000 kgs @shs.2.60

Direct materials used             23,100 kgs

Direct labour                           40,100 hours @ shs.7.30

Factory Overhead                 Shs.300, 000

Required:

Prepare a flexible budget for January 2004 production costs, based on actual production of 7,800 units.