Falstags Brewery has estimated $63,375, $68,625, and $73,875 budgeted costs for

Question

Falstags Brewery has estimated $63,375, $68,625, and $73,875 budgeted costs for the manufacture of 3,500, 4,500, and 5,500 gallons of beer, respectively, next quarter.

What are the variable and fixed manufacturing costs in the flexible budget for Falstags Brewery? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

What are the variable and fixed manufacturing costs in the flexible budget for Falstags Brewery? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

(73,875-63,375)/(5500-3500) = 5.25

73,875 = 5.25*5500 + b

73,875 = 28875 + b

B = 45000

Variable manufacturing costs per unit = $5.25 per unit

Total fixed manufacturing costs = $45,000.00

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.