Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. (a) $ $ At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the Fabricating Department and $37,600 in the Assembling Department. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) (b) At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $159,800 in the Fabricating Department and $112,800 in the Assembling Department. Your answer is correct. 47,000 total Fixed Costs 37,600 total Fixed Costs eTextbook and Media The total budgeted cost Fabricating Department + Variable Costs $ + Variable Costs of $ of $ $ Assembling Department 2.40 Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 49,820 and 44,180, in the Fabricating and Assembling Departments, respectively. 1.60 per direct labor per direct labor Attempts: 1 of 5 used
Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. (a) $ $ At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the Fabricating Department and $37,600 in the Assembling Department. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) (b) At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $159,800 in the Fabricating Department and $112,800 in the Assembling Department. Your answer is correct. 47,000 total Fixed Costs 37,600 total Fixed Costs eTextbook and Media The total budgeted cost Fabricating Department + Variable Costs $ + Variable Costs of $ of $ $ Assembling Department 2.40 Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 49,820 and 44,180, in the Fabricating and Assembling Departments, respectively. 1.60 per direct labor per direct labor Attempts: 1 of 5 used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller
uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department.
The graphs show the following.
1.
2.
(a)
$
$
At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the
Fabricating Department and $37,600 in the Assembling Department.
State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.)
(b).
At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at
$159,800 in the Fabricating Department and $112,800 in the Assembling Department.
Your answer is correct.
47,000 total Fixed Costs
37,600 total Fixed Costs
eTextbook and Media
The total budgeted cost
Fabricating Department
+ Variable Costs
$
of $
+ Variable Costs ✓ of $
Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 49,820 and 44,180, in the
Fabricating and Assembling Departments, respectively.
Assembling Department
$
2.40 per direct labor
1.60
per direct labor
Attempts: 1 of 5 used
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