Olive Company makes silver belt buckles. The company’s master budget appears in

Question

Olive Company makes silver belt buckles. The company’s master budget appears in the first column of the table.

Required:
Complete the table by preparing Olive’s flexible budget for 5,400, 7,400, and 8,400 units. (Round your intermediate calculations to 2 decimal places.)

Master Budget (6,400 Units) Flexible Budget (5,400 Units) Flexible Budget (7,400 Units) Flexible Budget (8,400 Units) Direct materials $1,280 Direct labor 3,840 Variable manufacturing overhead 1,920 Fixed manufacturing overhead 18,400 Total manufacturing cost $25,440

Explanation / Answer

Direct material/unit=(1280/6400)=$0.2

Direct labor/unit=(3840/6400)=$0.6/unit

Variable manufacturing overhead/unit=(1920/6400)=$0.3

NOTE:Total fixed costs and variable cost/unit do not chanhge with change in units.

Master Budget (6,400 Units) Flexible Budget (5,400 Units) Flexible Budget (7,400 Units) Flexible Budget (8,400 Units) Direct materials $1,280 1080 1480 1680 Direct labor 3,840 3240 4440 5040 Variable manufacturing overhead 1,920 1620 2220 2520 Fixed manufacturing overhead 18,400 18,400 18,400 18,400 Total manufacturing cost 25440 24340 26540 27640.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

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