Determining flexible budget amounts}

Mars Company has the following items and amounts as part of its master budget at the 10,000 -unit level of sales and production:

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

Transcribed Image Text:

Sales revenue Direct materials $100,000 20,000 Direct labor 15,000 Variable factory overhead 10,000 Fixed factory overhead 25,000