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13 November, 09:26

Miller and Sons' static budget for 9,800 units of production includes $35,800 for direct materials, $54,600 for direct labor, variable utilities of $6,800, and supervisor salaries of $14,100. A flexible budget for 12,900 units of production would show: a. direct materials of $47,124, direct labor of $71,871, utilities of $8,951, and supervisor salaries of $16,920 b. total variable costs of $111,300 c. the same cost structure in total d. direct materials of $47,124, direct labor of $71,871, utilities of $8,951, and supervisor salaries of $14,100 Round your final answer to the nearest dollar. Do not round interim calculations

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  1. 13 November, 11:46
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    The correct answer is D.

    Explanation:

    Giving the following information:

    Miller and Sons' static budget for 9,800 units of production includes:

    Direct material = $35,800 (35800/9800=3.653)

    Direct labor = $54,600 (54600/9800 = 5.5714)

    Variable utilities of $6,800 (6800/9800=0.694)

    Supervisor salaries of $14,100.

    Units = 12900

    Direct material: 3.653*12,900 = 47,124

    Direct labor = 5.5714*12,900 = 71,871

    Variable utilities = 0.694*12,900 = 8,953

    Supervisor salaries of $14,100.

    The supervisor salary is a fixed cost.
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