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Marshall cabinet manufacturers uses flexible budgets that are based on the following manufaturing data for the month of july: Direct Materials $8 per unit direct
Marshall cabinet manufacturers uses flexible budgets that are based on the following manufaturing data for the month of july:
Direct Materials | $8 per unit |
direct labor | $5 per unit |
Electric power (variable) | $0.30 per unit |
Electric power (fixed) | $4000 per month |
Supervisor salaries | $15000 per month |
property taxes on factory | $4000 per month |
straight- line depreciation | $2900 per month |
(a) prepare a flexible budget for marshall, based on production of 10,000, 15,000, and 20,000 units.
(b) if 14,000 units are produced, what is the variance to budget if the actual costs are $220,988?
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