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Marianna [84]
3 years ago
6

Miller and Sons' static budget for 10,300 units of production includes $36,800 for direct materials, $48,500 for direct labor, v

ariable utilities of $7,500, and supervisor salaries of $14,900. A flexible budget for 13,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. a.direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $17,880 b.direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $14,900 c.the same cost structure in total d.total variable costs of $107,700
Business
1 answer:
Alborosie3 years ago
8 0

Answer:

b. direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $14,900

Explanation:

\left|\begin{array}{c|c|c|c}$Item&$Cost for 10,300 Units&$Unit Cost&$Cost for 13900 Units\\--&--&--&--\\$Direct materials&\$36,800&\dfrac{36800}{10300} &\dfrac{36800}{10300}\times 13900$ Units=\$49662\\\\$Direct Labor&\$48,500&\dfrac{48500}{10300} &\dfrac{48500}{10300}\times 13900$ Units=\$65451\\\\$Variable Utilities&\$7,500&\dfrac{7500}{10300} &\dfrac{7500}{10300}\times 13900$ Units=\$10121\end{array}\right|The Supervisor's Salary is a fixed cost.

Therefore, a flexible budget for 13,900 units of production would show:

  • Direct materials of $49,662,
  • Direct labor of $65,451,
  • Utilities of $10,121
  • Supervisor salaries of $14,900
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