Problem

Preparing a flexible budget Using the following per-unit and total amounts, prepare a f...

Preparing a flexible budget

Using the following per-unit and total amounts, prepare a flexible budget at the 14,000-, 15,000-, and 16,000-unit levels of production and sales for Earthen Products Inc.:

Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75.00

Direct materials per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24.00

Direct labor per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.50

Variable factory overhead per unit. . . . . . . . . . . . . . . . . . . . . . . . $ 15.00

Fixed factory overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,000

Variable selling and administrative expense per unit . . . . $ 12.00

Fixed selling and administrative expense . . . . . . . . . . . . . . . . $80,000

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Solutions For Problems in Chapter 7