Question
In: Accounting
Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials 2 leather strips...
Flexible Budget for Various Levels of Production
Budgeted amounts for the year:
| Materials | 2 leather strips @ $7.00 |
| Labor | 1.5 hr. @ $18.00 |
| VOH | 1.5 hr. @ $1.20 |
| FOH | $6,800 |
Required:
1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units.
| Flexible Budget | ||||
| Variable Cost per Unit |
3,500 units |
4,000 units |
4,500 units |
|
| Direct materials | $ | $ | $ | $ |
| Direct labor | ||||
| Variable overhead | ||||
| Fixed overhead | ||||
| Total | $ | $ | $ | |
2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.)
Unit cost at 3,500 units $
Unit cost at 4,000 units $
Unit cost at 4,500 units $
What happens to unit cost as the number of units produced increases?
The cost per unit as the number of units produced increases because fixed cost is spread over a greater number of units.
Solutions
Expert Solution
In this question first we assume that for producing 1 unit we require :-
Material = 2 Leather Strips @ $7
Labour = 1.5 Hrs @ $18
VOH = 1.5 Hrs @ $1.20
FOH = $6,800
ekkarill92 answered 1 year agoRelated Solutions
Flexible Budget with Different Levels of Production Bowling Company budgeted the following amounts: Variable costs of...
Flexible Budget with Different Levels of Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
Required:
Prepare a flexible budget for 2,500 units, 3,000 units, and
3,500 units.
Bowling Company
Flexible Budget
2,500
units
3,000
units
3,500
units
Direct materials
$
$
$
Direct labor
Variable overhead
Fixed overhead:
Materials handling...
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts:...
Performance Report Based on Budgeted and Actual Levels of
Production
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
3 pounds @ $0.60 per pound
Direct labor
0.5 hr. @ $16.00 per hour
VOH
0.5 hr. @ $2.20
FOH:
Materials handling
$6,200
Depreciation
$2,600
At the end of the year, Bowling had the following actual costs
for production of 3,800 units:
Direct materials
$6,800
Direct labor
30,500
VOH
4,200
FOH:
Materials handling
6,300
Depreciation
$2,600
Required:
1....
-budgeted income statement – direct materials budget – production budget – sales budget -sales budget –...
-budgeted income statement – direct materials budget –
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-sales budget – production budget – direct materials budget –
budgeted income statement
Who would typically be responsible for the direct
material quantity variance?
-the production manager
-the chief financial officer
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Which of the following is not a component of the
operating budget?
-sales budget
-selling and administrative budget
-Budgeted balance sheet
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Top-down budgeting is:
-when...
Need explanation on doing flexible budget based on three levels of production with example.
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Using the following budgeted information for production of 9,000
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Expense A
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Expense B
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Total expenses $?
2.
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