EA15.

LO 7.4Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?

Question

Business

Junior Bates

8 July, 01:21

EA15.

LO 7.4Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?

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Answers (1)

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Hannah · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $2 per unit

direct labor of $3 per unit

manufacturing overhead of $1 per unit.

Fixed costs are $35,000.

20,000 units:

Total direct material = 2*20,000 = 40,000

direct labor = 3*20,000 = 60,0000

overhead = 1*20,000 = 20,000

Total manufacturing costs = $120,000

Fixed costs = 35,000

Total product costs = $155,000

25,000 units:

Total direct material = 2*25,000 = 50,000

direct labor = 3*25,000 = 75,0000

overhead = 1*25,000 = 25,000

Total manufacturing costs = $150,000

Fixed costs = 35,000

Total product costs = $185,000

EA15.LO 7.4Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?

EA15.

LO 7.4Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?