Flexible Budget for Varying Levels of Activity

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

Direct materials $7.20

Direct labor 1.54

Variable overhead:

Supplies 0.23

Maintenance 0.19

Power 0.18

Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $76,000, and other overhead of $245,000.

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.

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 $ $ $ $

Direct labor

Variable overhead:

Supplies

Maintenance

Power

Total variable costs $ $ $ $

Fixed overhead:

Supervision $ $ $

Depreciation

Other overhead

Total fixed costs $ $ $

Total production costs $ $ $

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 $

170,000 $

175,000 $

3. What if Nashler Companys 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