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Please type the answer. Don't give in notebook handwritten, PROBLEM SET #4 [7 marks) Problem #4 - [7 marks] 6.0 points possible (graded, results hidden)
Please type the answer. Don't give in notebook handwritten,
PROBLEM SET #4 [7 marks) Problem #4 - [7 marks] 6.0 points possible (graded, results hidden) Chacha Inc is a manufacturing firm and has provided following data related to costs: Details. . Fixed Cost/Month ($)............Cost/unit of production ($) Wages and Salaries.. 22700 15 Parts and Supplies... Equipment Depreciation.... 1600. 0.5 Lorry Operating Expenses... 6000 1.4 3370 Administrative Expenses.. 4300. 0.8 Rent... Chacha computes the total costs as "fixed cost/month plus variable cost". The company expected to produce 2600 units in May, but actually produced 3000 units. The product's selling price is $44 per unit. Instructions: a) Prepare static budget at the company's expected level of production (2.5 Marks) b) Prepare a flexible budget at the company's actual level of production (2.5 Marks) c) Indicate the variances wheather favoarable or unfavorable (2 Marks)Step by Step Solution
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