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Lisa [10]
3 years ago
9

Flexible Budgeting

Business
1 answer:
olganol [36]3 years ago
5 0

Answer:

Results are below.

Explanation:

Giving the following information:

<u>The flexible budget is adapting the standard costs to the actual quantity.</u>

<u>Fabricating Department:</u>

Depreciation= $2,300

Standard hourly rate= 2,300/640= $3.594

The department completed 600 hours of production.

Actual budget:

Depreciation= 2,300

Direct labor= 3.594*600= 2,156.4

Total cost= $4,456.4

<u>Grinding Department:</u>

Property tax= $30,000

Standard hourly rate= 55,200/2,400= $23

The department completed 2,900 hours of production.

Actual budget:

Property tax= $30,000

Direct labor= 23*2,900= 66,700

Total cost= $96,700

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