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click the bell icon to get latest videos from equator hello friends today well be discussing one postured somewhere we are required to see the changes in fix over its and variable rates during current and estimated period KT manufacturing company gives you the following particulars for the year 2002 production and sales during the year was 10,000 units material direct material 2 lakh 50,000 direct wages that is direct labor one like 50000 administration over its fixed 1 lakh sales profit factory overheads fixed 1 lakh variable 2 lakhs selling and distribution overheads fix 60,000 variable 90,000 the company has worked to its maximum capacity of 10,000 units so current your production is 10000 units that is the maximum capacity the management has decided to increase the production capacity to 15,000 units so this is a revised capacity 15,000 units for the year 2003 and it is estimated that there will be all round horizon all variable expenses expenditure by 10% there will be increase