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3 October, 23:54

Miller and Sons' static budget for 9,500 units of production includes $44,100 for direct materials, $52,600 for direct labor, variable utilities of $6,200, and supervisor salaries of $15,700. A flexible budget for 13,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations

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  1. 4 October, 03:30
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    The correct answer to the following question is, direct material is equal to $64,525, direct labor is equal to $76,962, variable utility is equal to $9072 and supervisor salary is $15,700

    Explanation:

    Given information -

    Budget for 9500 units of production, where

    Direct material = $44,100

    Direct labor = $52,600

    Variable utilities = $6,200

    Supervisor salaries which is a fixed cost is = $ 15,700

    Calculating the direct material, direct labor and variable utilities when budget is of 13,900 units -

    Direct material = $44,100 x 13,900 / 9500

    = $64,525 (approximately)

    Direct labor = $52,600 x 13,900 / 9500

    =$ 76,962 (approximately)

    Variable utilities = $6,200 x 13,900 / 9500

    = $9072 (approximately)

    Supervisor salaries is fixed cost = $15,700
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