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lord [1]
3 years ago
15

BE22-4 Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 80,0

00 to 120,000 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 20,000 unit increments.
Business
1 answer:
anzhelika [568]3 years ago
5 0

Answer:

\left[\begin{array}{cccc}Range&80,000&100,000&120,000\\ Materials&400,000&500,000&600,000\\ Labor&480,000&600,000&720,000 \\ Overhead&640,000&800,000&960,000 \\ Variable&1,600,000&2,000,000&2,400,000 \\ Depreciation&200,000&200,000&200,000 \\ Supervision&100,000&100,000&100,000 \\ Fixed&300,000&300,000&300,000\\ Total&1,960,000&2,300,000&2,700,000\\\end{array}\right]

Explanation:

We multiply the variable component for each relevant range.

Then for the fixed cost, we post the total.

Notice it is given for 1,200,000 units

so total depreciation 1,200,000 x 2 = 2,400,000 = 200,000 per month

Supervisor  1,200,000 x 1 = 1,200,000 = 100,000 per month

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Answer:

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Answer:

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