Venetian 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 $53,000 in the Fabricating Department and $43,000 in the Assembling Department. At normal capacity of 46,100 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $131,370 in the Fabricating Department, and $93,710 in the Assembling Department. 2. (a) State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) Fabricating Department $ total of $ Assembling Department $ total of $ Venetian 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 $53,000 in the Fabricating Department and $43,000 in the Assembling Department. At normal capacity of 46,100 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $131,370 in the Fabricating Department, and $93,710 in the Assembling Department. 2. (a) State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) total of $ per direct labor hour total of $ per direct labor hour Solution : Fabricating Department = $53,000 Fixed (+) Variable $ 1.7 Per Direct Labor Hour Assembling Department = $43,000 Fixed (+) Variable $ 1.1 Per Direct Labor Hour Explanation = At Nil Usage, Cost involved is Fixed Cost : Fabricating Department = $53,000 Assembling Department = $43,000 A B C = ( A-B) D (C+D) Total Cost Fixed Cost Variable Cost DLH Used Cost at 46100 DLH Level: Variable Cost per DLH 131,370 53,000 78,370 46,100 1.7 Fabricating Department 93,710 43,000 50,710 Assembling Department 46,100 1.1 I am so glad you asked for help when you needed its Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 49,100 and 43,100, in the Fabricating and Assembling Departments, respectively. Fabricating Department Assembling Department $ The total budgeted cost $