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9 September, 14:03

7) Dynozz Corporation currently produces cardboard boxes in an automated process. Expected production per month is 15,000 units, direct material costs are $0.50 per unit, and manufacturing overhead costs are $15,000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 10,000 and 15,000 units, respectively

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  1. 9 September, 17:34
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    Instructions are below.

    Explanation:

    Giving the following information:

    Variable cost:

    Direct material = $0.50 per unit

    Fixed cost:

    Fixed overhead = $15,000

    Total cost for 10,000 units:

    Variable cost = 0.50*10,000 = 5,000

    Fixed costs = 15,000

    Total cost = $20,000

    Total cost for 15,000 units:

    Variable cost = 0.50*15,000 = 7,500

    Fixed costs = 15,000

    Total cost = $22,500
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