Question

Concord Company expects to produce 1,207,200 units of Product XX in 2020. Monthly production is expected to range from 76,000 to 118,000 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1.

Prepare a flexible manufacturing budget for the relevant range value using 21,000 unit increments. (List variable costs before fixed costs.)

CONCORD COMPANY Monthly Flexible Manufacturing Budget For the Year 2020
Direct MaterialsDepreciationVariable CostsSupervisionFixed CostsTotal CostsFinished UnitsTotal Variable CostsTotal Fixed CostsActivity LevelDirect LaborOverhead
Finished UnitsOverheadSupervisionTotal Variable CostsFixed CostsTotal Fixed CostsTotal CostsVariable CostsDirect MaterialsActivity LevelDepreciationDirect Labor
Activity LevelDirect MaterialsSupervisionTotal Variable CostsTotal CostsFixed CostsFinished UnitsVariable CostsOverheadDepreciationDirect LaborTotal Fixed Costs
Variable Costs    Finished Units    Activity Level    Depreciation    Direct Labor    Total Fixed Costs    Fixed Costs    Direct Materials    Overhead    Supervision    Total Costs    Total Variable Costs	$		$		$
Depreciation    Direct Materials    Direct Labor    Finished Units    Fixed Costs    Overhead    Supervision    Total Costs    Total Fixed Costs    Total Variable Costs    Variable Costs    Activity Level
Activity Level    Variable Costs    Depreciation    Direct Labor    Direct Materials    Total Fixed Costs    Finished Units    Total Costs    Total Variable Costs    Fixed Costs    Overhead    Supervision
Overhead    Fixed Costs    Depreciation    Direct Labor    Supervision    Total Costs    Direct Materials    Total Fixed Costs    Total Variable Costs    Finished Units    Variable Costs    Activity Level	$		$		$
SupervisionDirect LaborDepreciationDirect MaterialsTotal Variable CostsFixed CostsVariable CostsOverheadTotal CostsActivity LevelFinished UnitsTotal Fixed Costs
Total Variable Costs    Depreciation    Variable Costs    Activity Level    Direct Labor    Direct Materials    Overhead    Finished Units    Fixed Costs    Supervision    Total Costs    Total Fixed Costs
Total Variable Costs    Variable Costs    Finished Units    Activity Level    Total Fixed Costs    Fixed Costs    Depreciation    Overhead    Supervision    Direct Labor    Direct Materials    Total Costs
Direct Labor    Fixed Costs    Supervision    Direct Materials    Overhead    Total Fixed Costs    Activity Level    Depreciation    Finished Units    Total Costs    Total Variable Costs    Variable Costs
Total Variable CostsFinished UnitsOverheadFixed CostsDirect MaterialsDirect LaborTotal Fixed CostsSupervisionVariable CostsActivity LevelTotal CostsDepreciation	$		$		$

Answer 1

Concord Company Monthly Flexible Manufacturing Budget Activity level Finished units Variable costs Direct materials Direct labor Over head Total variable Costs Fixed Costs Depreciation Supervision Total Fixed cost 97000 118000 76000 291000 228000 354000 532000 679000 826000 970000 1940000 760000 1180000 1520000 2360000 402400 402400 402400 100600 100600 100600 503000 503000 503000 Total Costs 2863000 2023000 2443000