Miller and Sons\' static budget for 10,000 units of production includes $36,700
ID: 2338009 • Letter: M
Question
Miller and Sons' static budget for 10,000 units of production includes $36,700 for direct materials, $45,400 for direct labor, variable utilities of $6,100, and supervisor salaries of $16,500. A flexible budget for 13,300 units of production would show
Round your final answer to the nearest dollar. Do not round interim calculations.
direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor salaries of $16,500
direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor salaries of $19,800
total variable costs of $104,700
the same cost structure in total
Explanation / Answer
Direct Materials,Direct labor and variable utilities are variable costs and Supervisor Salaries is fixed which will not change wirh the change in volume.
So the budget will show direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor salaries of $16,500
Qty Amount for 10,000 Units= (A) Varaible cost per unit (B)=A/10,000 Amount for 13300 units is ( C)=(B)*13300 Direct material 36700 3.67 $ 48,811.00 Direct Labor 45400 4.54 $ 60,382.00 Utilities 6100 0.61 $ 8,113.00