Question

In: Accounting

A static budget, based upon production of 10,000 units, showed an estimated direct labor budget of...

A static budget, based upon production of 10,000 units, showed an estimated direct labor budget of $30,000 and depreciation budget of $20,000. Direct labor costs are fully variable. The actual direct labor and depreciation costs were $28,000 and $19,000 for 8,000 units.

Which total amount should be shown in the flexible budget for direct labor and depreciation costs?

Solutions

Expert Solution

Flexible Budget Cost for Direct Labor =($30000 /10000 units) x 8000 actual units = $ 24,000

Flexible Budget Cost for Depreciation = Fixed cost = Same as Budgeted = $ 20,000

Total Flexible Budget cost = 24000 + 20000 = $ 44,000

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Miller and Sons' static budget for 10,000 units of production includes $36,700 for direct materials, $45,400...
Miller and Sons' static budget for 10,000 units of production includes $36,700 for direct materials, $45,400 for direct labor, variable utilities of $6,100, and supervisor salaries of $16,500. A flexible budget for 13,300 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor salaries of $16,500 direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor...
Ya ya inc static budget for 10,000 units of production
Ya ya inc static budget for 10,000 units of production
The static budget for Van Enterprises includes the production of 10,000 units. Van has also budgeted...
The static budget for Van Enterprises includes the production of 10,000 units. Van has also budgeted $50,000 for direct labor, $44,000 for direct materials, utility costs of $5,000, and the plant manager's salary of $15,000. A flexible budget for 12,000 units of production would show: Group of answer choices the same cost structure in total direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and plant manager's salary of $15,000 total variable costs of $136,800 direct labor of...
Static budget variable overhead $7,800 Static budget fixed overhead $3,900 Static budget direct labor hours 1,300...
Static budget variable overhead $7,800 Static budget fixed overhead $3,900 Static budget direct labor hours 1,300 hours Static budget number of units 5,200 units Goldman allocates manufacturing overhead to production based on standard direct labor hours. Last ​month, Goldman reported the following actual ​results: actual variable​ overhead, $ 10,200 actual fixed​overhead, $ 2, 830 actual production of 7,100 units at 0.20 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit ​(1,300 static...
A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a...
A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a fixed cost. At the 50,000 direct labor hours worked in March, factory insurance costs were $6,300. Is this a favorable or unfavorable performance? Why?
A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a...
A static overhead budget based on 40,000 direct labor hours shows Factory Insurance $6,500 as a fi xed cost. At the 50,000 direct labor hours worked in March, factory insurance costs were $6,300. Is this a favorable or unfavorable performance? Why?
1. Miller and Sons' static budget for 9,500 units of production includes $40,300 for direct materials,...
1. Miller and Sons' static budget for 9,500 units of production includes $40,300 for direct materials, $53,800 for direct labor, variable utilities of $6,800, and supervisor salaries of $15,000. A flexible budget for 14,000 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. a.direct materials of $59,389, direct labor of $79,284, utilities of $10,021, and supervisor salaries of $18,000 b.total variable costs of $115,900 c.direct materials of $59,389, direct labor of...
Miller and Sons' static budget for 9,600 units of production includes $37,700 for direct materials, $48,700...
Miller and Sons' static budget for 9,600 units of production includes $37,700 for direct materials, $48,700 for direct labor, variable utilities of $7,400, and supervisor salaries of $15,700. A flexible budget for 13,800 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. a. direct materials of $54,194, direct labor of $70,006, utilities of $10,638, and supervisor salaries of $15,700 b. total variable costs of $109,500 c. direct materials of $54,194, direct...
35. Aspen Technologies has the following budget data: Estimated direct labor hours Estimated direct labor dollars...
35. Aspen Technologies has the following budget data: Estimated direct labor hours Estimated direct labor dollars Estimated factory overhead costs 15.000 $90,000 $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined overheadrateis   If factory overhead is to be applied based on direct labour hours, the predetermined overhead rate is: a. $7.50 b. $13.20 c. $2.20 d. $16.50
Pulham Company is preparing its direct labor budget for 2016 from the following production budget based...
Pulham Company is preparing its direct labor budget for 2016 from the following production budget based on a calendar year:  Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1.  Prepare a direct labor budget for 2016. 
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT