Question

7

Miller and Sons' static budget for 10,100 units of production includes $39,300 for direct materials, $53,600 for direct labor, variable utilities of $6,100, and supervisor salaries of $16,800. A flexible budget for 12,900 units of production would show

Round your final answer to the nearest dollar. Do not round interim calculations.

a.total variable costs of $115,800

b.direct materials of $50,195, direct labor of $68,459, utilities of $7,791, and supervisor salaries of $16,800

c.the same cost structure in total

d.direct materials of $50,195, direct labor of $68,459, utilities of $7,791, and supervisor salaries of $20,160

Answer 1

		Amount	Cost Type	PU Cost
	Direct Material	39300	Variable	3.89	(Cost/Units(10100))
	Direct Labor	53600	Variable	5.31
	Variable Utilities	6100	Variable	0.60
	Supervisor Salaries	16800	Fixed
	Flexible Budget for 12900 Units:
		Cost Type	PU Cost	Amount
	Direct Material	Variable	3.89	50195	Cost PU*12900
	Direct Labor	Variable	5.31	68459
	Variable Utilities	Variable	0.60	7791
	Supervisor Salaries	Fixed		16800
				143246
	Answer is B