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12:20 AM Wed Nov 11 100% 5 TO + : VI. 12 points The Kalamazoo Company operates its producing departments under a flexible budget. The

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12:20 AM Wed Nov 11 100% 5 TO + : VI. 12 points The Kalamazoo Company operates its producing departments under a flexible budget. The division manager is interested in obtaining the fixed and variable costs relationship applicable to activity levels. The budget is presented at two activity levels as follows: At 30,000 Units At 80,000 Units Expenses of Production of Production Supervision $12.500 $20,000 Indirect labor 9.600 15.600 Payroll taxes 3,000 7,500 Heat, light and power. 8.000 18.000 Indirect materials 2.500 5,000 Maintenance of machinery. .6,000 9,000 Miscellaneous factory costs.. 2,500 4,500 Total $44,100 S79,600 REQUIRED: Determine the variable and fixed components at the 30,000 unit level for each of the following: (Unless all supporting computations for every answer are presented in good traceable order, there will be NO credit (a) Supervision 1.$ variable component fixed component (b) Indirect labor: 1. $ variable component 2.$ fixed component (c)Payroll taxes: 1.5 variable component 2.$ fixed component 6 6 7

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