Answer:
Rodger's Cabinet Manufacturers
Rodger's Cabinet Manufacturers
Flexible Budget for the Month Ended July 31
10,000 units 15,000 units 20,000 units
Variable Costs:
Direct materials $8 per unit $80,000 $120,000 $160,000
Direct labor $5 per unit 50,000 75,000 100,000
Electric power (variable) $0.30 3,000 4,500 6,000
Total variable costs $133,000 $199,500 $266,000
Fixed costs:
Electric power (fixed) 4,000 4,000 4,000
Supervisor salaries 25,000 25,000 25,000
Property taxes on factory 4,000 4,000 4,000
Straight-line depreciation 2,900 2,900 2,900
Total fixed costs $35,900 $35,900 $35,900
Total costs $169,400 $235,400 $301,900
Explanation:
a) Data and Calculations:
Direct materials $8 per unit
Direct labor $5 per unit
Electric power (variable) $0.30 per unit
Electric power (fixed) $4,000 per month
Supervisor salaries $25,000 per month
Property taxes on factory $4,000 per month
Straight-line depreciation $2,900 per month
