Question

Perkins Company provides the following data developed for its master budget:

Sales price 11.00 per unit

Costs:
Direct materials 3.00 per unit

Direct labor 4.25 per unit

Variable overhead 0.50 per unit

factory depreciation is 12,000 per month

supervision is 11,000 per month

selling expense is 0.25 per unit

administrative cost 9,000 per month

Required:
Prepare flexible budgets for sales of 20,000, 22,000 and 24,000 units. Use a contribution margin format.

Answer 1