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:

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.

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.)

Nashler Company Flexible Budget Range of Range of Range of Variable Production Production Production cost per in Units in Units in Units unit 160,000 170,000 175,000 $ Production costs: Variable: Direct materials $ Direct labor Variable overhead: Supplies Maintenance Power Total variable costs mini im i 10 ini inci Fixed overhead: Supervision Depreciation Other overhead Total fixed costs Total production costs Per-unit Product Cost 160,000 170,000 175,000 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. by $ per unit