Part B

Exercise 24-7 (Part Levei Submission Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system ather than use only the current master budget. The following data are available for AP's expected costs at production levels of 85,000, 95,000, and 105,000 units. Variable costs $7 per unit Manufacturing $3 per unit Administrative $1 per unit Selling Fixed costs $133,000 Manufacturing $80,000 Administrative (a Your answer is correct. Prepare a flexible budget for each of the possible production levels: 85,000, 95,000, and 105,000 units. (List variable costs before fixed costs) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget Activity Level 85.000 95.000 Production Levels 105,000 Variable Costs 595,000 665,000 Manufacturing 735,000 255,000 285,000 315,000 Administrative Selling 85,000 95,000 105,000 935.000 Total Variable Costs 1,045,000 1,155,000 Fixed Costs Manufacturing 133,000 133,000 133,000 80,000 80,000 Administrative 80,000 Total Fixed costs 213,000 213,000 213,000 1,148,000 1,258,000 1,368,000 Total Costs