Flexible Budget with Different Levels of Production

Balboa Company budgeted the following amounts:

Variable costs of production:

Direct materials

3 pounds @ $1.30 per pound

Direct labor

0.5 hr. @ $18.00 per hour

VOH

0.5 hr. @ $3.40

FOH:

Materials handling

$8,600

Depreciation

$4,350

Required:

make a flexible budget for 4,000 units, 4,500 units, and 5,000 units.

Balboa Company

Flexible Budget

4,000 units

4,500 units

5,000 units

Direct materials

$fill in the blank 1

$fill in the blank 2

$fill in the blank 3

Direct labor

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fill in the blank 5

fill in the blank 6

Variable overhead

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fill in the blank 8

fill in the blank 9

Fixed overhead:

Materials handling

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Depreciation

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Total

$fill in the blank 16

$fill in the blank 17

$fill in the blank 18