Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production:
Sales revenue.................................................... $100,000
Direct materials...................................................... 20,000
Direct labor............................................................ 15,000
Variable factory overhead...................................... 10,000
Fixed factory overhead.......................................... 25,000
Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range:
a. 8,000-unit level of sales and production
b. 12,000-unit level of sales and production