Melton Company has the following budgeted variable costs per unit produced:

Budgeted fixed overhead costs per month include supervision of $110,000, depreciation of $135,000, and other overhead of $245,000.
Required:
1. Prepare a flexible budget for all costs of production for the following levels of production:
210,000 units, 220,000 units, and 230,000 units.
2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
3. What if Melton Company’s cost of maintenance rose to $0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?LO1

Transcribed Image Text:

Direct materials Direct labor Variable overhead: Supplies Maintenance Power $3.40 1.30 0.23 0.19 0.18