Question

Miller and Sons' static budget for 9,600 units of production includes $37,700 for direct materials, $48,700 for direct labor, variable utilities of $7,400, and supervisor salaries of $15,700. A flexible budget for 13,800 units of production would show

Round your final answer to the nearest dollar. Do not round interim calculations.

a. direct materials of $54,194, direct labor of $70,006, utilities of $10,638, and supervisor salaries of $15,700

b. total variable costs of $109,500

c. direct materials of $54,194, direct labor of $70,006, utilities of $10,638, and supervisor salaries of $18,840

d. the same cost structure in total

Answer 1

Flexible Budget Report
	13,800 units
Variable Costs:
Direct Materials(13,800*$3.92708333)	$                     54,194
Direct labor(13,800*$5.07291666)	$                     70,006
Variable Utilities(13,800*$0.77083333)	$                     10,638
Total Variable Costs	$                  1,34,838
Fixed Costs:
Supervisor Salaries	$                     15,700
Total Fixed Costs
Total Costs	$                  1,50,538
So Option B is the answer