Acme Company’s production budget for August is 19,500 units and includes the following component unit costs:...

Acme Company’s production budget for August is 19,500 units and includes the following component unit costs: direct materials, $8.00; direct labor, $12.00; variable overhead, $6.00. Budgeted fixed overhead is $52,000. Actual production in August was 21,450 units.

Required:

Prepare a flexible budget that would be used to compare against actual production costs for August. (Round "Cost per unit" to 2 decimal places.)

Expert Solution

Solution:

Acme Company
Flexible Budget
For August
Production in Units	21450

Direct materials (241400/34000*35600)	$1,71,600
Direct Labor (207400/34000*35600)	$2,57,400
Variable Overhead (51000/34000*35600)	$1,28,700
Total variable costs	$5,57,700
Fixed overhead	$52,000

Total manufacturing Costs	$6,09,700

ekkarill92 answered 1 year ago

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