Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. Note: Round "Cost per unit" to 2 decimal places.
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. Note: Round "Cost per unit" to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units.
Required:
Prepare a flexible budget that would be used to compare against actual production costs for August.
Note: Round "Cost per unit" to 2 decimal places.
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