Rodger's Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July:Direct materials$8 per unitDirect labor$5 per unitElectric power (variable)$0.30 per unitElectric power (fixed)$4,000 per monthSupervisor salaries$25,000 per monthProperty taxes on factory$4,000 per monthStraight-line depreciation$2,900 per month Prepare a flexible budget for Rodger's based on production of 10,000, 15,000, and 20,000 units.Rodger's Cabinet ManufacturersFlexible Manufacturing BudgetFor the Month Ended July 31Units of productionVariable cost:Direct materials ($8 per unit)Direct labor ($5 per unit)Electric power (50.30 per unit)Total variable costFixed cost:Electric powerSupervisor salariesProperty taxesDepreciation expense,Total fixed costTotal manufacturing costs%24%24

Fixed costs remain constant at all levels of output , therefore it will remain unchanged at all…

Rodger's Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July: Direct materials $8 per unit Direct labor $5 per unit Electric power (variable) $0.30 per unit Electric power (fixed) $4,000 per month Supervisor salaries $25,000 per month Property taxes on factory $4,000 per month Straight-line depreciation $2,900 per month

Rodger's Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July: Direct materials $8 per unit Direct labor $5 per unit Electric power (variable) $0.30 per unit Electric power (fixed) $4,000 per month Supervisor salaries $25,000 per month Property taxes on factory $4,000 per month Straight-line depreciation $2,900 per month

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 2E: Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a...

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