Harland Corporation currently produces cardboard boxes in an automated process. Expected production per month is 22 comma 000 units, direct material costs are $ 5.00 per unit, and manufacturing overhead costs are $ 13 comma 000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 12 comma 000 and 22 comma 000 units, respectively?

Question

Business

Jaquan Boyle

5 September, 13:00

Harland Corporation currently produces cardboard boxes in an automated process. Expected production per month is 22 comma 000 units, direct material costs are $ 5.00 per unit, and manufacturing overhead costs are $ 13 comma 000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 12 comma 000 and 22 comma 000 units, respectively?

+4

Answers (1)

Know the Answer?

Livia Downs · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Expected production per month is 22,000 units, direct material costs are $ 5.00 per unit, and manufacturing overhead costs are $ 13,000 per month. Manufacturing overhead is all fixed costs.

FLexible budget for 12,000 and 22,000 units.

12,000 units:

Total cost = 12,000*5 + 13,000 = 73,000

22,000 units:

Total cost = 22,000*5 + 13,000 = 123,000