Riverbed Company expects to produce 1,272,000 units of Product XX in 2022. Monthly production is expected to range from 84,800 to 127,200 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 21,200 unit increments. (List variable costs before fixed costs. Activity Level Finished Units RIVERBED COMPANY Monthly Flexible Manufacturing Budget For the Year 2022 84800 106000 127200 Variable Costs Direct Materials $ 424000 530000 636000 Direct Labor Overhead 508800 636000 763200 678400 848000 1017600 Total Variable Costs 1611200 2014000 2416800 Fixed Costs Depreciation Supervision Total Fixed Costs Total Costs +A 424000 424000 424000 424000 212000 636000 636000 2247200 2650000 EA 212000 636000 3052800

Riverbed Company expects to produce 1,272,000 units of Product XX in 2022. Monthly production is expected to range from 84,800 to 127,200 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 21,200 unit increments. (List variable costs before fixed costs. Activity Level Finished Units RIVERBED COMPANY Monthly Flexible Manufacturing Budget For the Year 2022 84800 106000 127200 Variable Costs Direct Materials $ 424000 530000 636000 Direct Labor Overhead 508800 636000 763200 678400 848000 1017600 Total Variable Costs 1611200 2014000 2416800 Fixed Costs Depreciation Supervision Total Fixed Costs Total Costs +A 424000 424000 424000 424000 212000 636000 636000 2247200 2650000 EA 212000 636000 3052800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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.

Question

Riverbed Company expects to produce 1,272,000 units of Product XX in 2022. Monthly production is expected to range
from 84,800 to 127,200 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead
$8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1.
Prepare a flexible manufacturing budget for the relevant range value using 21,200 unit increments. (List variable costs before fixed costs.
Activity Level
Finished Units
RIVERBED COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2022
84800
106000
127200
Variable Costs
Direct Materials
$
424000
530000
636000
Direct Labor
Overhead
508800
636000
763200
678400
848000
1017600
Total Variable Costs
1611200
2014000
2416800
Fixed Costs
Depreciation
Supervision
Total Fixed Costs
Total Costs
+A
424000
424000
424000
424000
636000
2247200
$
212000
636000
2650000
EA
212000
636000
3052800

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