Question
A companys fixed budget (based on 7,500 units) follows. Compute total fixed costs. Fixed Budget Sales (7,500 $720 per unit) $ 5,400,000 Costs Direct materials
A companys fixed budget (based on 7,500 units) follows. Compute total fixed costs.
| Fixed Budget | |
| Sales (7,500 $720 per unit) | $ 5,400,000 |
| Costs |
|
| Direct materials | 540,000 |
| Direct labor | 990,000 |
| Indirect materials | 353,000 |
| Supervisory salary | 133,000 |
| Sales commissions | 283,000 |
| Shipping | 311,000 |
| Administrative salaries | 423,000 |
| Depreciation Office equipment | 73,000 |
| Insurance | 43,000 |
| Office rent | 75,000 |
| Income | $ 2,176,000 |
A) $747,000. B) $614,000. C) $1,029,000. D) $672,000. E) $704,000.
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
