Question

Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table. Required: Complete the table by preparing Olive's flexible budget for 5,800, 7,800, and 8,800 units. (Round your intermediate calculations to 2 decimal places.) Master Budget Flexible Budget Flexible Budget Flexible Budget (6,800 Units) (5,800 Units) (7,800 Units) (8,800 Units) 680 Direct materials Direct labor 3,400 Variable manufacturing overhead 1,360 Fixed manufacturing overhead 18,800 24,240 Total manufacturing cost $

Answer 1

	Master Budget ( 6800 Units)	Flexible Budget (5,800 Units)	Flexible Budget (7,800 Units)	Flexible Budget (8,800 Units)
Direct Materials	680	580	780	880
Direct Labor	3,400	2,900	3,900	4,400
variable manufacturing overhead	1,360	1,160	1,560	1,760
Fixed manufacturing overhead	18,800	18,800	18,800	18,800
Total manufacturing cost	24,240	23,440	25,040	25,840

Note:

	Master Budget ( 6800 Units)	Per Unit ( Respective Cost / 6800 Units)	For 5800 Units ( Per Unit * 5800 Units)	For 7800 Units ( Per Unit * 7800Units)	For 8800 Units ( Per Unit * 8800Units)
Direct Materials	680	0.10	580	780	880
Direct Labor	3400	0.50	2900	3900	4400
variable manufacturing overhead	1360	0.20	1160	1560	1760
Fixed manufacturing overhead	18800		18800	18800	18800
Total manufacturing cost	24240		23440	25040	25840