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
