Missing information:
Direct materials (4.0 lbs. x $4.00 per lb.) $ 16.00
Direct labor (2.0 hrs. x $11.00 per hr.) 22.00
Overhead (2.0 hrs. x $18.50 per hr.) 37.00
Total standard cost $ 75.00
Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials $ 15,000
Indirect labor 75,000
Power 15,000
Repairs and maintenance 30,000
Total variable overhead costs $ 135,000
Fixed overhead costs
Depreciation--building 25,000
Depreciation--machinery 72,000
Taxes and insurance 18,000
Supervision 305,000
Total fixed overhead costs 420,000
Total overhead costs $555,000
Answer:
I used an excel spreadsheet to calculate the flexible budget because there is no room here. The production levels represent 13,000 units, 15,000 units and 17,000 units respectively. As total output increases, cost per unit decreases.
