15.Miller and Sons\' static budget for 10,200 units of production includes $38,5

Question

15.Miller and Sons' static budget for 10,200 units of production includes $38,500 for direct materials, $47,700 for direct labor, variable utilities of $7,600, and supervisor salaries of $14,800. A flexible budget for 12,500 units of production would show

Round your final answer to the nearest dollar. Do not round interim calculations.

a.the same cost structure in total

b.direct materials of $47,181, direct labor of $58,456, utilities of $9,314, and supervisor salaries of $17,760

c.direct materials of $47,181, direct labor of $58,456, utilities of $9,314, and supervisor salaries of $14,800

d.total variable costs of $108,600

Explanation / Answer

The correct asnwer is :

c.direct materials of $47,181, direct labor of $58,456, utilities of $9,314, and supervisor salaries of $14,800

Note :

2. Supervisor Salaries is a fixed cost and doesnot change with the number of units.

At 10,200 Units Per Unit ( Cost / 10,200) At 12,500 Units ( Per Unit * 12,500 Units) Direct Materials 38,500.00 3.77 47,181 Direct Labor 47,700.00 4.68 58,456 Variable utilities 7,600.00 0.75 9,314 Supervisor Salaries 14,800.00 14,800.00 14,800

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