Question
Bowling Company budgeted the following amounts: Variable costs of production: Direct materials 3 pounds @ $0.60 per pound Direct labor 0.5 hr. @ $16.00 per
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials 3 pounds @ $0.60 per pound
Direct labor 0.5 hr. @ $16.00 per hour
VOH 0.5 hr. @ $2.20
FOH:
Materials handling $6,200
Depreciation $2,600
Required: I need to make a flexible budget for 2,500, 3000, 3500 units but I am unsure how to determine the variable overhead cost?
flexible budget for 2,500 units, 3,000 units, and 3,500 units.
Bowling Company
Flexible Budget
2,500 units 3,000 units 3,500 units
Direct materials $
Direct labor
Variable overhead
Fixed overhead:
Materials handling
Depreciation
Total $
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