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Lady bird [3.3K]
3 years ago
12

Miller and Sons' static budget for 9,800 units of production includes $35,800 for direct materials, $54,600 for direct labor, va

riable utilities of $6,800, and supervisor salaries of $14,100. A flexible budget for 12,900 units of production would show: a. direct materials of $47,124, direct labor of $71,871, utilities of $8,951, and supervisor salaries of $16,920 b. total variable costs of $111,300 c. the same cost structure in total d. direct materials of $47,124, direct labor of $71,871, utilities of $8,951, and supervisor salaries of $14,100 Round your final answer to the nearest dollar. Do not round interim calculations
Business
1 answer:
Nikolay [14]3 years ago
8 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Miller and Sons' static budget for 9,800 units of production includes:

Direct material= $35,800 (35800/9800=3.653)

Direct labor= $54,600  (54600/9800= 5.5714)

Variable utilities of $6,800 (6800/9800=0.694)

Supervisor salaries of $14,100.

Units= 12900

Direct material: 3.653*12,900= 47,124

Direct labor=  5.5714*12,900= 71,871

Variable utilities= 0.694*12,900= 8,953

Supervisor salaries of $14,100.

The supervisor salary is a fixed cost.

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