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Folsom Company budgeted the following amounts: Variable costs of production: Direct materials 6 pounds @ $0.90 per pound Direct labor 0.70 hours @ $16.00 per
Folsom Company budgeted the following amounts:
Variable costs of production: | ||
Direct materials | 6 pounds @ $0.90 per pound | |
Direct labor | 0.70 hours @ $16.00 per hour | |
Variable overhead | 0.70 hours @ $2.10 per hour | |
Fixed overhead: | ||
Materials handling | $29,000 | |
Depreciation | $12,300 |
Required:
Prepare a flexible budget for 1,000 units, 1,200 units, and 1,400 units. Enter all amounts as positive numbers. Assume all are within the relevant range.
Folsom Company | |||
Flexible Budget | |||
1,000 units | 1,200 units | 1,400 units | |
Direct materials | $ | $ | $ |
Direct labor | $ | $ | $ |
Variable overhead | $ | $ | $ |
Fixed overhead: | |||
Materials handling | $ | $ | $ |
Depreciation | $ | $ | $ |
Total | $ | $ | $ |
A. The total flexible budget amount for 1,000 units is $.
B. The total flexible budget amount for 1,200 units is $.
C. The total flexible budget amount for 1,400 units is $.
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