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 2 years 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 –
production budget – sales budget
-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
-the purchasing manager
-the human resources manager
Which of the following is not a component of the
operating budget?
-sales budget
-selling and administrative budget
-Budgeted balance sheet
-raw materials purchases budget
Top-down budgeting is:
-when...
Need explanation on doing flexible budget based on three levels of production with example.
Need explanation on doing flexible budget based on three levels
of production with example.
Using the following budgeted information for production of 9,000 and 14,000 units, prepare a flexible budget...
Using the following budgeted information for production of 9,000
and 14,000 units, prepare a flexible budget for 19,000 units.
Lens Junction sells lenses for $45 each and is estimating sales
of 16,000 units in January and 19,000 in February. Each lens
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labor rate of $20 per hour. Desired inventory levels are:
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Using the following budgeted information for production of 9,000 and 15,000 units, prepare a flexible budget...
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and 15,000 units, prepare a flexible budget for 18,000 units.
Production
9,000 units
15,000 units
Expense A
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$24,000
Expense B
22,000
22,000
Expense C
43,000
43,000
Total expenses $?
2.
The production cost for a waterproof phone case is $6 per unit
and fixed costs are $24,000 per month. How much is the favorable or
unfavorable variance if 5,600 units were produced for a total of
$57,100? Enter the amount...
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