Flexible Budget [LO1]

Pierr Manufacturing Inc. has provided the following information concerning its manufacturing costs:

For example, utilities should be $1,600 per month plus $0.15 per machine-hour. The company expects to work 4,000 machine-hours in July. Note that the company’s direct labor is a fixed cost.
Required:
Prepare the company’s planning budget for manufacturing costs for July.

Transcribed Image Text:

Direct materials.. Direct labor... Supplies Utilities. Depreciation.. Insurance Fixed Cost Cost per per Month Machine-Hour $5.70 $42,800 $0.20 $1,600 $0.15 $14,900 $11,400