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mash [69]
4 years ago
10

Wind Productions uses flexible budgets. Items from the budget for March in which 3,000 units were produced and sold appear below

: Direct materials$18,000 Indirect materials - variable2,000 Supervisor salaries15,000 Depreciation on factory equipment4,000 Direct labor10,000 Property taxes on factory1,000
If Wind prepares a flexible budget at 4,000 units, compute its total variable cost.
Total variable cost$
Business
1 answer:
ladessa [460]4 years ago
5 0

Answer:

$40,000

Explanation:

For computing the total variable cost, first we have to determine the variable cost per unit which is shown below:

= (Direct materials cost + Indirect materials - variable + Direct labor cost) ÷ (number of units produced and sold)

= ($18,000 + $2,000 + $10,000) ÷ (3,000 units)

= ($30,000) ÷ (3,000 units)

= $10 per unit

Now the total variable cost would be

= $4,000 units × $10 per unit

= $40,000

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$143,200

Explanation:

Given that,

Work in process inventory at the beginning = $24,000

Direct material = $55,400

Direct labor = $28,600

Applied manufacturing overhead = $53,200

Work in process inventory at the end = $18,000

Cost of goods manufactured for June:

= Work in process inventory at the beginning + Direct material + Direct labor + Applied manufacturing overhead - Work in process inventory at the end

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= $143,200

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The correct answer is False.

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Schedule M-3 asks certain questions about the financial statements of the corporation and reconciles the net income (loss) of the financial statements for the corporation (or group of consolidated financial statements, if applicable).

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Explanation:

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Answer:

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