Exercise 9-9 Flexible Budget

Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:

Fixed Costs Costs/machine hour

Direct materials $4.25

Direct Labor $36,800

Supplies $.30

Utilities $1400

Depreciation $16,700

Insurance $12,700

For Example, utilities should be $1400 per month plus $0.05 per machine-hour. The company expects to work 5000 machine-hours in June. Note tha the companys direct labor is a fixed cots.

REQUIRED: Prepare the company's planning budge for manufacturing costs for June