Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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. At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $62,000 in the Fabricating Department and $49,600 in the Assembling Department. 2. At normal capacity of 62,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $210,800 in the Fabricating Department and $148,800 in the Assembling Department. (a) State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) Fabricating Department =$ total $ Assembling Department =$ total $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started