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Exercise 22-7 (Part Level Submission) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants

Exercise 22-7 (Part Level Submission) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for APs expected costs at production levels of 80,000, 95,000, and 110,000 units.

Variable costs

Manufacturing $6 per unit

Administrative $3 per unit

Selling $2 per unit

Fixed costs

Manufacturing $139,000

Administrative $79,000

Prepare a flexible budget for each of the possible production levels: 80,000, 95,000, and 110,000 units. (List variable costs before fixed costs.) image text in transcribed

APPLIANCE POSSIBLE INC. Flexible Production Cost Budget

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