Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 19 Aug 2017 My Price 6.00

Levels of Production

Exercise 11-31  Flexible Budget for Various Levels of Production

Budgeted amounts for the year:

Materials                                            2 leather strips @ $7.00

Labor                                                 1.5 hr. @ $18.00

VOH                                     1.5 hr. @ $1.20

FOH                                      $6,800

 

Required:

1.       Prepare a flexible budget for 3,500, 4,000, and 4,500 units.

2.       CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) What happens to unit cost as the number of units produced increases?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overhead Item

Total Fixed Cost

Variable Rate per Direct Labor Hour

Maintenance

$  86,000

$0.20

Power

 

0.45

Indirect labor

140,000

2.10

Rent

35,000

 

 

 

 

 

 

 

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 03:08 PM My Price 6.00

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