Flexible Budget for Varying Levels of Activity

Nashler Company has the following budgeted variable costs per unit produced:

Direct materials	$7.10
Direct labor	1.54
Variable overhead:
Supplies	0.23
Maintenance	0.19
Power	0.17

Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $77,000, and other overhead of $248,000.

Required:

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1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. Round your answers to the nearest cent, if required.

blank Nashler Company Flexible Budget

	Variable cost per unit	Range of Production in Units 160,000	Range of Production in Units 170,000	Range of Production in Units 175,000
Production costs:
Variable:
Direct materials	$fill in the blank 1a8c55081022072_1	$fill in the blank 1a8c55081022072_2	$fill in the blank 1a8c55081022072_3	$fill in the blank 1a8c55081022072_4
Direct labor	fill in the blank 1a8c55081022072_5	fill in the blank 1a8c55081022072_6	fill in the blank 1a8c55081022072_7	fill in the blank 1a8c55081022072_8
Variable overhead:
Supplies	fill in the blank 1a8c55081022072_9	fill in the blank 1a8c55081022072_10	fill in the blank 1a8c55081022072_11	fill in the blank 1a8c55081022072_12
Maintenance	fill in the blank 1a8c55081022072_13	fill in the blank 1a8c55081022072_14	fill in the blank 1a8c55081022072_15	fill in the blank 1a8c55081022072_16
Power	fill in the blank 1a8c55081022072_17	fill in the blank 1a8c55081022072_18	fill in the blank 1a8c55081022072_19	fill in the blank 1a8c55081022072_20
Total variable costs	$fill in the blank 1a8c55081022072_21	$fill in the blank 1a8c55081022072_22	$fill in the blank 1a8c55081022072_23	$fill in the blank 1a8c55081022072_24
Fixed overhead:
Supervision		$fill in the blank 1a8c55081022072_25	$fill in the blank 1a8c55081022072_26	$fill in the blank 1a8c55081022072_27
Depreciation		fill in the blank 1a8c55081022072_28	fill in the blank 1a8c55081022072_29	fill in the blank 1a8c55081022072_30
Other overhead		fill in the blank 1a8c55081022072_31	fill in the blank 1a8c55081022072_32	fill in the blank 1a8c55081022072_33
Total fixed costs		$fill in the blank 1a8c55081022072_34	$fill in the blank 1a8c55081022072_35	$fill in the blank 1a8c55081022072_36
Total production costs		$fill in the blank 1a8c55081022072_37	$fill in the blank 1a8c55081022072_38	$fill in the blank 1a8c55081022072_39

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Use variable cost per unit to determine costs for each range of production. Remember, fixed costs remain constant.

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2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)

	Per-unit Product Cost
160,000	$fill in the blank b0dfbcf59065026_1
170,000	$fill in the blank b0dfbcf59065026_2
175,000	$fill in the blank b0dfbcf59065026_3

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3. What if Nashler Company's cost of maintenance rose to $0.22 per unit? How would that affect the unit product costs calculated in Requirement 2? If required, round your answer to the nearest cent.