Answer:
The correct answer to the following question is , direct material is equal to $64,525, direct labor is equal to $76,962, variable utility is equal to $9072 and supervisor salary is $15,700
Explanation:
Given information -
Budget for 9500 units of production, where
Direct material = $44,100
Direct labor = $52,600
Variable utilities = $6,200
Supervisor salaries which is a fixed cost is = $ 15,700
Calculating the direct material, direct labor and variable utilities when budget is of 13,900 units -
Direct material = $44,100 x 13,900 / 9500
= $64,525 ( approximately )
Direct labor = $52,600 x 13,900 / 9500
=$ 76,962 (approximately )
Variable utilities = $6,200 x 13,900 / 9500
= $9072 (approximately )
Supervisor salaries is fixed cost = $15,700
