Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pharoah Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs.
Pharoah Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate graphs based on direct labor hours are used for each department. The graphs show the following. 1. At zero direct labor hours, the total budgeted cost line and the fixed cost line intersect the vertical axis at $54,000 in the Fabricating Department and $42,000 in the Assembling Department. 2. At normal capacity of 47,500 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $134,750 in the Fabricating Department, and $118,000 in the Assembling Department. State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) abricating Department $ total of $ Assembling Department $ total v of Activate Wir State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, eg. 1.25.) of $ per direct labor hour total total of $ per direct labor hour Activate to Se
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started