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sergiy2304 [10]
3 years ago
14

Gundy Company expects to produce 1,308,000 units of Product XX in 2020. Monthly production is expected to range from 73,000 to 1

07,000 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3. Prepare a flexible manufacturing budget for the relevant range value using 17,000 unit increments. (List variable costs before fixed costs.)
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

<u>17,000 units increments flexed budget</u>

direct materials($5, × 17,000)                                             85,000

direct labor ($7 × 17,000)                                                    119,000

overhead ($9 × 17,000)                                                      153,000

fixed manufacturing costs - depreciation ($5 × 17,000)    85,000

fixed manufacturing costs - supervision ($3 × 17,000)      51,000

Total                                                                                    493,000

Explanation:

A flexible budget matches the budgeted costs and revenues to the actual level of operation rather than the budgeted level of operation (master budget).

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