How to answer the variable rate per unit? Factory heat, light & powerFactory heat, light & power142Erlinda CorporationElexible Overhead Budget, Division 1For the Month of January, 2021Fixed overhead:Depreciation, machinery40,000 USupervision60,000 U100,000 UMaintenance, machineryIndirect materialsMiscellaneous overheadVariable overhead:Materials spoilageIndirect laborSupervisionTotalMaintenance, machineryIndirect materialsMiscellaneous overheadTotalTotal factory overheadErlinda CorporationElexible Selling & Administrative Expenses Budget, Division 1For the Month of January, 202140,000 U60,000 U100,000 UFixed expenses:Sales & office salariesOffice suppliesMiscellaneous S & A expensesTotalVariable expenses:Sales commissionOffice suppliesMiscellaneous S & A expensesTotalTotal selling & administrative expenses per hour with 12 hours required to produce 20 units. 10% of the labor costs isP10.00. Spoilage is to be treated as factory overhead. Labor costs are P75.00definitely fixed in the amount of P50,000 are the depreciation of machinery andJevels of operating activity (40,000 units, 60,000 units, and 100,000 units). Costsbudget for factory overhead, selling & administrative expenIses for at least threeOther expenses which generally were considered wholly variable yet seemA division manager at the Erlinda Corporation is interested in a flexibleMaterial costs are P10.00 per unit with spoilage averaging 2% of146Exercise 4-30GOLO 482equipment.indirect laborAt 30,000 unitsSupervisionFactory heat, light &powerMaintenance, machineryIndirect materialsMiscellaneous overheadSales commissionOffice suppliesMiscellaneous selling &administrative expensesTotal production has never exceeded 100,000 units in any one month.of productionAt 80,000 unitsP25,000of production19,200P40,00031,20015,00010,0009,00040,00018,0006,0005,0005,00015,00012,00035,00080,000REQUIRED:Rising the high-low technique, split the 8 seemingly semi-variables intotheir fixed and variable segments.2 Prepare a flexible budget for selling & administrative expenses for the firstmonth of 2021.Fixed30,000units80,000unitsCostVariableDifferencerate/unitI5 00012,000SupervisionFactory heat, light & powerMaintenance, machineryIndirect materialsMiscellaneous overheadSales commissionOffice suppliesMiscellaneous S& A expenses9.000.000400025.0004.00045,000

Under high low method, variable cost per unit will be calculated by taking difference of costs at…

A division manager at the Erlinda Corporation is interested in a flexible rcise 4-30 pudget for factory overhead, selling & administrative expeses for at least three jevels of operating activity (40,000 units, 60,000 units, and 100,000 units). Costs Spoilage is to be treated as factory overhead. Labor costs are P75.00 definitely fixed in the amount of PS0,000 are the depreciation of machinery and Material costs are PI0.00 per unit with spoilage averaging 2%a of hour with 12 hours required to produce 20 units. 10% of the labor costs is Other expenses which generally were considered wholly variable yet seem equipment. PI0.00. per indirect labor. fixed component are: a to possess At 30,000 units of production Supervision Factory heat, light &power Maintenance, machinery Indirect materials Miscellaneous overhead Sales commission Office supplies Miscellaneous selling & administrative expenses Total production has never exceeded 100,000 units in any one month. At 80,000 units P25,000 of production 19,200 P40,000 31,200 6,000 5,000 15,000 10,000 5,000 15,000 12,000 9,000 40,000 18,000 35,000 80,000 1. Using the high-low technique, split the 8 seemingly semi-variables into their fixed and variable segments REQUIRED: