UMPI's Potatoes produces ready-to-eat mashed potatoes for resale at food stores. The master budget indicates that the company expects to use 5 pounds of direct materials for each unit produced at a cost of $5 per pound (one unit = one batch of mashed). Each unit produced will require 0.40 direct labor hours at a cost of $7.50 per hour. Variable manufacturing overhead is applied based on direct labor hours at a rate of $4 per hour. Last year's sales were expected to total 60,000 units. Jake just received last year's actual results showing sales of 55,000 units. 1) Devise a schedule showing the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead. 2) Devise a flexible budget based on actual sales for direct materials, direct labor, and variable manufacturing overhead.

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ANSWER 1 Standard Cost Per Unit Direct Materials Standard quantity 5 pounds per unit Standard price ... View the full answer