1) McCabe Manufacturing Co.\'s static budget at 6,000 units of production includ

Question

1) McCabe Manufacturing Co.'s static budget at 6,000 units of production includes $42,000 for direct labor and $6,000 for electric power. Total fixed costs are $24,000. At 9,000 units of production, a flexible budget would show:

2) For January sales revenue is $400,000; sales commission are 4% of sales; the sales manager's salary is $80,000; advertising expenses are $75,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $1,000 plus 7/8 of 1% of sales. Total selling miscellaneous expenses for the month of January are:

Explanation / Answer

Flexible budget :

2) Calculate Total selling miscellaneous expenses for the month of January

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