At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials...

At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting?

a. $288,000

b. $305,000

c. $350,000

d. $378,000

Budgeted sales for the month are

a. $3,180,000

b. $5,820,000

c. $1,800,000

d. $8,500,000

The dollar amount of Material C used in production during the year is

a. $746,400

b. $724,800

c. $824,400

d. $758,160

Solutions

Expert Solution

Answer:

Direct labour cost for 10000 hours = 110,000 / 8000 * 10000 = $137,500

Direct Material cost for 10000 hours = 170,000 / 8000 * 10000 = $212,500

Fixed Factory Overhead = $28000 (this won’t change with change in production hours)

Therefore, Appropriate Total Budget for Department = 137,500 + 212,500 + 28,000

= $378,000

For the last two questions i need additional information to solve. Thank you.

ekkarill92 answered 1 year ago

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