Pronghorn Company has two production departments, Fabricating and Assembling. At a department managers meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is 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 $52,000 in the Fabricating Department and $41,600 in the Assembling Department.
2.		At normal capacity of 52,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $176,800 in the Fabricating Department and $124,800 in the Assembling Department.

(a)

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Your answer is correct.

State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.)

Fabricating Department	=	$enter a dollar amount per direct labour hour rounded to 2 decimal places total select an option Variable CostsFixed Costs + select an option Variable CostsFixed Costs of $enter a dollar amount per direct labour hour rounded to 2 decimal places per direct labor hour
Assembling Department	=	$enter a dollar amount per direct labour hour rounded to 2 decimal places total select an option Variable CostsFixed Costs + select an option Fixed CostsVariable Costs of $enter a dollar amount per direct labour hour rounded to 2 decimal places per direct labor hour

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(b)

Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 55,120 and 48,880, in the Fabricating and Assembling Departments, respectively.

		Fabricating Department		Assembling Department
The total budgeted cost		$enter a dollar amount		$enter a dollar amount