A company has the following total cost data available for two levels of production of one type
Question:
A company has the following total cost data available for two levels of production of one type of product:
The current supervisor can cover production levels up to and including 5,000 units. For higher levels of production, an assistant supervisor costing £16,000 is also required.
For power, a flat fee is payable that will cover all power costs sufficient to produce up to and including 6,000 units. For production above this level there is an additional variable charge per unit.
Calculate the total flexed budget cost allowance for the production of 7,500 units.
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Step by Step Answer:
To calculate the total flexed budget cost allowance for the production of 7500 units we need to adjust each cost category based on the given productio...View the full answer
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