eBook Print Item Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials 2 leather strips @ $7.00 Labor 1.5 hr. @ $18.00 VOH 1.5 hr. @ $1.20 FOH $6,800Required: 1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units. Flexible Budget Variable Cost per Unit 3,500 units 4,000 units 4,500 units Direct materials $fill in the blank 1 $ fill in the blank 2 $ fill in the blank 3 $ fill in the blank 4 Direct labor fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Variable overhead fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Fixed overhead fill in the blank 13 fill in the blank 14 fill in the blank 15 Total $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) Unit cost at 3,500 units $fill in the blank 19 Unit cost at 4,000 units $fill in the blank 20 Unit cost at 4,500 units $fill in the blank 21 What happens to unit cost as the number of units produced increases? The cost per unit as the number of units produced increases because fixed cost is spread over a greater number of units.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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eBookPrint Item
Flexible Budget for Various Levels of Production
Budgeted amounts for the year:
Required:Materials 2 leather strips @ $7.00 Labor 1.5 hr. @ $18.00 VOH 1.5 hr. @ $1.20 FOH $6,800 1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units.
Flexible Budget Variable Cost
per Unit
3,500 units
4,000 units
4,500 unitsDirect materials $fill in the blank 1 $ fill in the blank 2 $ fill in the blank 3 $ fill in the blank 4 Direct labor fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Variable overhead fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Fixed overhead fill in the blank 13 fill in the blank 14 fill in the blank 15 Total $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.)
Unit cost at 3,500 units $fill in the blank 19
Unit cost at 4,000 units $fill in the blank 20
Unit cost at 4,500 units $fill in the blank 21
What happens to unit cost as the number of units produced increases?
The cost per unit as the number of units produced increases because fixed cost is spread over a greater number of units.
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