Answer:
Total Cost using 20,000 increments is as follows:
40,000 units - $1,080,000 (Total Cost)
60,000 units - $1,620,000 (Total Cost)
80,000 units - $2,160,000 (Total Cost)
Explanation:
<u>Monthly Flexible Manufacturing Budgets</u>
<u>Units Produced</u> <u>40,000</u> <u>60,000</u> <u>80,000</u>
Direct Material (7/unit) 280,000 420,000 560,000
Direct Labor (8/unit) 320,000 480,000 640,000
Variable Overhead (9/unit) 360,000 540,000 720,000
Total Variable Cost 960,000 1,440,000 1,920,000
Fixed Overhead (3/unit) 120,000 180,000 240,000
Total Cost $1,080,000 $1,620,000 $2,160,000