Question

Elements of a Flexible Budgets
Presented are partial flexible cost budgets for various levels of output.

Required
Solve for items "a" though "n"

	Rate per unit		Units
		5,000	7,500	10,000
Direct materials	a. $Answer	$50,000	b. $Answer	c. $Answer
Direct labor	d. $Answer	e. Answer	15,000	f. Answer
Variable overhead	$3.00	g. Answer	h. Answer	i. Answer
Fixed overhead		j. Answer	k. Answer	l. Answer
Total		m. $Answer	n. $Answer	$200,000

Answer 1

	Rate per unit	Units
		5000	7500	10000
Direct materials	$10.00	$       50,000	$       75,000	$ 100,000
Direct labor	$ 2.00	$       10,000	$       15,000	$           20,000
Variable overhead	$ 3.00	$       15,000	$       22,500	$           30,000
Fixed overhead		$       50,000	$       50,000	$           50,000
Total		$ 125,000	$ 162,500	$ 200,000

Note: The rate per unit is constant for direct materials, direct labor, and variable overhead while the total direct materials, direct labor, and variable overhead varies in proportion to the number of units. The fixed overhead is constant at all levels of activity.