Johnson, Inc.s has provided the following information regarding Junes results. Revenue and Cost

Formula Actual Results

Revenue $13.00/unit $28,000

Conversion costs $3.25/unit 7,000

Salaries $8,000 7,600

Utilities $600 + $0.50/unit 1,550

Rent $5,000 5,000

Miscellaneous $800+ $0.80/unit 2,500

1

Required:

a) Prepare the companys planning budget assuming that 2,000 units were manufactured.

b) Assume that 2,100 units were actually manufactured. Prepare the flexible budget for this level of activity.