Prepare a flexible income statement budget for three production levels of Crow Co. Production: 150,000 units;...

Prepare a flexible income statement budget for three production levels of Crow Co.

Production: 150,000 units; 180,000 units, 200,000 units.

Price per unit: $120

Costs:

Direct Material: 10% of total revenues, Direct Labor: 15% of total revenues, Factory Overhead: 5% of total revenues. Fixed Costs = $78,000

Expenses:

Administrative Expenses: 15% of Gross Profit, Selling Expenses: 10% of Gross Profit

Crow Co. Flexible Income Statement, Dec/31/20XY

Production Level	150,000	180,000	200,000
Revenues

Expert Solution

Flexible Budget:

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A flexible budget is created for the different operational levels of activities considering changes in budget with a change in volume of level of activity. As in the present case, Revenue, Production costs, and expenses will change with change in production level. Following is a flexible budget for the above-given situation:

ekkarill92 answered 2 years ago

Assume no safety inventory Prepare a flexible income statement budget for three production levels of Crow...

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