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Ayayai Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs.
Ayayai Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $40,000 in the Fabricating Department and $32,000 in the Assembling Department. At normal capacity of 40,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $128,000 in the Fabricating Department and $96,000 in the Assembling Department. (a) (b) Your answer is correct. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, eg. 1.25) Fabricating Department 40000 total Fond Costs Variable Costs of $ Assembling Department 32000 total Fled Costs Variable Costs of $ eTextbook and Media Attempts: 1 of 3 used Your answer is incorrect. Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 42.400 and 37,600, in the Fabricating and Assembling Departments, respectively. Fabricating Department Assembling Department The total budgeted cost
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