Manufacturer uses flexible budgets that are based on following: DirectMaterials

Question

Manufacturer uses flexible budgets that are based on following:
DirectMaterials                      $8 per unit
DirectLabor                           $5 per unit
ElectricPower(variable)           $0.30 per unit
ElectricPower(fixed)                $4,000 per month
Supervisorsalaries                    $15,000 per month
Property taxes onfactory          $4,000 per month
Straight-linedepreciation           $2,900 per month

Prepare flexible budget for ABC Manufacturer on production of10,000, 15,000, and 20,000 units

Explanation / Answer

FlexibleBudget

FlexibleBudget

10,000 Units 15,000 Units 20,000 Units Direct Material 80,000.00 120,000.00 160,000.00 Direct Labor 50,000.00 75,000.00 100,000.00 Variable Electric Cost 3,000.00 4,500.00 6,000.00 Total Variable Cost 133,000.00 199,500.00 266,000.00 Fixed Costs - Power 4,000.00 4,000.00 4,000.00 Salaries 15,000.00 15,000.00 15,000.00 Taxes 4,000.00 4,000.00 4,000.00 Depreciation 2,900.00 2,900.00 2,900.00 Total Cost 291,900.00 424,900.00 557,900.00

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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