1. P26-A1 Basic flexible budgeting (L.O. 2) Centron, Inc., has the following bud

Question

1. P26-A1 Basic flexible budgeting (L.O. 2) Centron, Inc., has the following budgeted production costs: Direct materials $0.40 per unit Direct labor 1.80 per unit Variable factory overhead 2.20 per unit Fixed factory overhead Supervision $24,000 Maintenance 18,000 Other 12,000 Instructions: a. Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity. b. Was Centron's experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer. c. Explain the benefit of using flexible budgets (as opposed to static budgets) in the measurement of performance.

Explanation / Answer

Hi, If you like my answer rate me lifesaver first...that way only I can earn points. Thanks Rate 20000 units 22000 units 25000 units Direct Material 0.4 8000 8800 10000 Direct Labor 1.8 36000 39600 45000 Variable Factory Overhead 2.2 44000 48400 55000 Total Fixed Factory Overhead 54000 54000 54000 54000 Total Costs 142000 150800 164000 for part b),c),d) please provide the relevant data

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