Answered

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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: Variable costs: Direct labor ($6.00 per unit) Direct materials ($8.00 per unit) Variable manufacturing costs ($2.50 per unit) Fixed costs: Supervisor's salaries $80,000 Rent 12,000 Depreciation on equipment 24,000

Sagot :

facundobuzzetti

Answer:

Results are below.

Explanation:

Giving the following information:

Total unitary variable cost= $16.5

Total fixed costs= $116,000

Now, the flexible budget for each production level:

16,000 units:

Total variable cost= 16.5*16,000= 264,000

Total fixed cost= 116,000

Total costs= $380,000

18,000 units:

Total variable cost= 16.5*18,000= 297,000

Total fixed cost= 116,000

Total costs= $413,000

20,000 units:

Total variable cost= 16.5*20,000= 330,000

Total fixed cost= 116,000

Total costs= $446,000

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