Question

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 salaries of $19,800

total variable costs of $104,700

the same cost structure in total

Answer 1

Direct Materials,Direct labor and variable utilities are variable costs and Supervisor Salaries is fixed which will not change wirh the change in volume.

Qty	Amount for 10,000 Units= (A)	Varaible cost per unit (B)=A/10,000	Amount for 13300 units is ( C)=(B)*13300
Direct material	36700	3.67	$                                                             48,811.00
Direct Labor	45400	4.54	$                                                             60,382.00
Utilities	6100	0.61	$                                                                8,113.00

So the budget will show direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor salaries of $16,500