Miller and Sons' static budget for 9,500 units of production includes $44,100 for direct materials, $52,600 for direct labor, variable utilities of $6,200, and supervisor salaries of $15,700. A flexible budget for 13,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations

The correct answer to the following question is, direct material is equal to $64,525, direct labor is equal to $76,962, variable utility is equal to $9072 and supervisor salary is $15,700

Explanation:

Given information -

Budget for 9500 units of production, where

Direct material = $44,100

Direct labor = $52,600

Variable utilities = $6,200

Supervisor salaries which is a fixed cost is = $ 15,700

Calculating the direct material, direct labor and variable utilities when budget is of 13,900 units -

Direct material = $44,100 x 13,900 / 9500

= $64,525 (approximately)

Direct labor = $52,600 x 13,900 / 9500

=$ 76,962 (approximately)

Variable utilities = $6,200 x 13,900 / 9500

= $9072 (approximately)

Supervisor salaries is fixed cost = $15,700