M9-5 (Algo) Preparing a Flexible Budget [LO 9-2] 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 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Activity level Finished units Prepare a flexible manufacturing budget using 20,000 unit increments. Answer is complete but not entirely correct. Evanson Company Monthly Flexible Manufacturing Budget Variable costs Direct materials Direct labor Overhead Total variable costs Fixed costs Total fixed costs Total costs 20,000 $20 $400,000$ 420,000 440,000 $1,260,000 141,000 $ 1,401,000 21 22 3 40.000 80,000 800,000 $1,600,000 840,000 1,680,000 880,000 1,760,000 $2,520,000 $5,040,000 141,000 141,000 $ 2,661,000$ 5,181,000
M9-5 (Algo) Preparing a Flexible Budget [LO 9-2] 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 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Activity level Finished units Prepare a flexible manufacturing budget using 20,000 unit increments. Answer is complete but not entirely correct. Evanson Company Monthly Flexible Manufacturing Budget Variable costs Direct materials Direct labor Overhead Total variable costs Fixed costs Total fixed costs Total costs 20,000 $20 $400,000$ 420,000 440,000 $1,260,000 141,000 $ 1,401,000 21 22 3 40.000 80,000 800,000 $1,600,000 840,000 1,680,000 880,000 1,760,000 $2,520,000 $5,040,000 141,000 141,000 $ 2,661,000$ 5,181,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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![M9-5 (Algo) Preparing a Flexible Budget [LO 9-2]
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
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Activity level
Finished units
Variable costs
Prepare a flexible manufacturing budget using 20,000 unit increments.
Answer is complete but not entirely correct.
Evanson Company
Monthly Flexible Manufacturing Budget
Direct materials
Direct labor
Overhead
Total variable costs
Fixed costs
Total fixed costs
Total costs
20,000
$20
$400,000$
420,000
440,000
$1,260,000
141,000
$ 1,401,000
21
22
3
40.000
80,000
800,000 $1,600,000
840,000
1,680,000
880,000
1,760,000
$2,520,000
$5,040,000
141,000
141,000
$ 2,661,000$ 5,181,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb92fac67-783e-4795-9388-6a69eb76385b%2F22eb5ce1-73c5-49f1-a6ee-4a4008564bdb%2Fsnrd50s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:M9-5 (Algo) Preparing a Flexible Budget [LO 9-2]
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
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Activity level
Finished units
Variable costs
Prepare a flexible manufacturing budget using 20,000 unit increments.
Answer is complete but not entirely correct.
Evanson Company
Monthly Flexible Manufacturing Budget
Direct materials
Direct labor
Overhead
Total variable costs
Fixed costs
Total fixed costs
Total costs
20,000
$20
$400,000$
420,000
440,000
$1,260,000
141,000
$ 1,401,000
21
22
3
40.000
80,000
800,000 $1,600,000
840,000
1,680,000
880,000
1,760,000
$2,520,000
$5,040,000
141,000
141,000
$ 2,661,000$ 5,181,000
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