Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units Variable costs Direct materials Direct labor Overhead Total variable costs Fixed costs Total fixed costs Total costs

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Evanson Company expects to produce 564,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows:

 

     
Direct materials $ 20
Direct labor   21
Variable manufacturing overhead   22
Fixed manufacturing overhead   3
 

 

Prepare a flexible manufacturing budget using 20,000 unit increments.

 

 

 

 

Evanson Company
Monthly Flexible Manufacturing Budget
Activity level
Finished units
Variable costs
Direct materials
Direct labor
Overhead
Total variable costs
Fixed costs
Total fixed costs
Total costs
Transcribed Image Text:Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units Variable costs Direct materials Direct labor Overhead Total variable costs Fixed costs Total fixed costs Total costs
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