Prepare a flexible budget for Cedar Jeans Company using production levels of 16,
ID: 2361298 • Letter: P
Question
Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget: Cedar Jeans Company Flexible Budget For the Year Ended December 31, 20-- Units of production Variable Costs: Direct Labor ($6.00 per unit) $ $ $ Direct Materials ($8.00 per unit) Variable Costs ($2.50 per unit) Total Variable Costs $ $ $ Fixed Costs: Supervisor's Salaries $ $ $ Rent Depreciation on Equipment Total Fixed Costs $ $ $ Total Manufacturing Budget $ $ $Explanation / Answer
Hi, If you like my answer rate me lifesaver first...that way only I can earn points. Thanks Units of production Variable Costs: 16000 18000 20000 Direct Labor ($6.00 per unit) Direct Materials ($8.00 per unit) Variable Costs ($2.50 per unit) Total Variable Costs per unit = $6 + 8 +2.5 =$16.5 for 16000 units total cost = $16.5 * 16000 = $264000 for 18000 units total cost = $16.5 * 18000 = $297000 for 20000 units total cost = $16.5 * 16000 = $330000 Fixed Costs is not known. so I cannot tell about total manufacturing costs