Question
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
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.
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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Feedback
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.
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