EB15.

LO 7.4Judge’s Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are $49,000. What would be the budgeted amounts for 33,000 and 35,000 units?

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $3 per unit

direct labor of $2.50 per unit

manufacturing overhead of $1.25 per unit

Fixed costs are $49,000.

33,000 units:

Flexible budget:

Total direct marerial = 3*33,000 = $99,000

Direct labor = 2.5*33,000 = $82,500

MOH = 1.25*33,000 = $41,250

Total manufacturing costs = $222,750

Fixed costs = 49,000

Total production costs = $271,750

35,000 units:

Total direct marerial = 3*35,000 = $105,000

Direct labor = 2.5*35,000 = $87,500

MOH = 1.25*35,000 = $43,750

Total manufacturing costs = $236,250

Fixed costs = 49,000

Total production costs = $285,250