Question
1.Bailey Manufacturing Co.'s static budget at 10,000 units of production includes $60,000 for direct labor and $6,000 for electric power. Total fixed costs are $20,000.
1.Bailey Manufacturing Co.'s static budget at 10,000 units of production includes $60,000 for direct labor and $6,000 for electric power. Total fixed costs are $20,000. At 14,000 units of production, a flexible budget would show
a.variable and fixed costs totaling $120,400.
b.variable costs of $66,000 and $20,000 of fixed costs.
c.variable costs of $92,400 and $20,000 of fixed costs.
d.variable costs of $92,400 and $28,000 of fixed costs.
2.Coleman Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $6,000 for electric power. Total fixed costs are $20,000. At 12,000 units of production, a flexible budget would show
a.variable and fixed costs totaling $79,200.
b.variable costs of $46,000 and $20,000 of fixed costs.
c.variable costs of $55,200 and $20,000 of fixed costs.
d.variable costs of $55,200 and $24,000 of fixed costs.
i need to know how to calculate this, not just the answer
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