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Budgeted amounts for the year: Materials 3 leather strips @ $6.70 Labor 1.5 hr @ $19.00 Variable overhead (VOH) 2.5 hr @ $0.80 Fixed overhead
Budgeted amounts for the year:
Materials | 3 leather strips @ $6.70 |
Labor | 1.5 hr @ $19.00 |
Variable overhead (VOH) | 2.5 hr @ $0.80 |
Fixed overhead (FOH) | $6,100 |
Required: | |
1. | Prepare a flexible budget for 3,400, 3,900, and 4,400 units. |
2. | CONCEPTUAL CONNECTION (a) Calculate the unit cost at 3,400, 3,900, and 4,400 units. (b) What happens to unit cost as the number of units produced increases? |
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