Bowling Company budgeted the following amounts:

Direct materials	3 pounds @ $0.60 per pound
Direct labor	0.5 hr @ $16.00 per hour
VOH	0.5 hr @ $2.20 per hour

Materials handling	$6,200
Depreciation	$2,600

Required:

Prepare a flexible budget for 2,500 units, 3,000 units and 3,500 units.

Refer to the list below for the exact wording of a label or an amount description within your budget.

Depreciation
Direct labor
Direct materials
Materials handling
Total
Total conversion cost
Total cost of goods sold
Total prime cost
Variable overhead

Prepare a flexible budget for 2,500 units, 3,000 units and 3,500 units. (Note: Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Question not attempted.

Bowling Company

Flexible Budget

1		2,500 units	3,000 units	3,500 units
2	Variable:
3
4
5
6	Fixed overhead:
7
8
9

Solution

Bowling Company

Flexible Budget

1		2,500 units	3,000 units	3,500 units
2	Variable:
3
4
5
6	Fixed overhead:
7
8
9