Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

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

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.