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2 years ago

EA15.

Business

1 answer:

alexgriva [62]2 years ago

3 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $2 per unit

direct labor of $3 per unit

manufacturing overhead of $1 per unit.

Fixed costs are $35,000.

20,000 units:

Total direct material= 2*20,000= 40,000

direct labor= 3*20,000= 60,0000

overhead= 1*20,000= 20,000

Total manufacturing costs= $120,000

Fixed costs= 35,000

Total product costs= $155,000

25,000 units:

Total direct material= 2*25,000= 50,000

direct labor= 3*25,000= 75,0000

overhead= 1*25,000= 25,000

Total manufacturing costs= $150,000

Fixed costs= 35,000

Total product costs= $185,000

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