provides the following data developed for its master budget: Perkins Company $11

Question

provides the following data developed for its master budget: Perkins Company $11.00 per unit Sales price Costs: Direct materials Direct labor Variable overhead Factory depreciation Supervisors' salaries Selling expense Administrative cost $4.00 per unit 53.25 per unit $0.50 per unit $11,000 per month $9,000 per month $0.25 per unit $12,000 per month Required Prepare flexible budgets for sales of 20,000, 22,000, and 24,000 units. Use a contribution margin (variable costing) income statement format. Please label each row in the variable and fixed expenses Volume 22,000 Description 24,000 Per Unit 20,000 Sales Less: Variable Expenses Total Variable Expenses Contribution Margin Less: Fixed Expenses Total Fixed Expenses Net Operating Income

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Flexible Budget - Perkins Company Description Per unit Volume 20000 22000 24000 Sales $11.00 $220,000.00 $242,000.00 $264,000.00 Less: Variable Expenses: Direct materials $4.00 $80,000.00 $88,000.00 $96,000.00 Direct labor $3.25 $65,000.00 $71,500.00 $78,000.00 Variable overhead $0.50 $10,000.00 $11,000.00 $12,000.00 Selling Expense $0.25 $5,000.00 $5,500.00 $6,000.00 Total variable expenses $8.00 $160,000.00 $176,000.00 $192,000.00 Contribution margin $3.00 $60,000.00 $66,000.00 $72,000.00 Less: Fixed Expenses: Factory Depreciation $11,000.00 $11,000.00 $11,000.00 Supervisor's Salaries $9,000.00 $9,000.00 $9,000.00 Administrative Cost $12,000.00 $12,000.00 $12,000.00 Total fixed expenses $32,000.00 $32,000.00 $32,000.00 Net Operating Income $28,000.00 $34,000.00 $40,000.00

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