Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials Labor VOH FOH 2 leather strips @ $7.00 1.5 hr. $18.00 1.5 hr. @ $1.20 $6,500 Required: 1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units. Flexible Budget Direct materials Direct labor Variable overhead Fixed overhead Total Variable Cost per Unit 3,500 units $ 4,000 units S 4,500 units $ 2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the
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.
![Flexible Budget for Various Levels of Production
Budgeted amounts for the year:
Materials
Labor
VOH
FOH
2 leather strips @ $7.00
1.5 hr. $18.00
1.5 hr. @ $1.20
$6,800
Required:
1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units.
Flexible Budget
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total
Variable Cost
per Unit
3,500 units
$
4,000 units
4,500 units
5
2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc9a6736-8e83-4087-b2e0-c2d527e761d0%2F4116d161-07c4-4260-8321-d5e12fa4923e%2Fyt39tyu_processed.jpeg&w=3840&q=75)
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