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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 16
FLEXIBLE BUDGET FOR VARYING LEVELS OF ACTIVITY
Melton Company has the following budgeted variable costs per unit produced:
Budgeted fixed overhead costs per month include supervision of $110,000, depreciation of $135,000, and other overhead of $245,000.
Required:
1. Prepare a flexible budget for all costs of production for the following levels of production: 210,000 units, 220,000 units, and 230,000 units.
2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
3. What if Melton Company's cost of maintenance rose to $0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Melton Company has the following budgeted variable costs per unit produced:
Budgeted fixed overhead costs per month include supervision of $110,000, depreciation of $135,000, and other overhead of $245,000.
Required:
1. Prepare a flexible budget for all costs of production for the following levels of production: 210,000 units, 220,000 units, and 230,000 units.
2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
3. What if Melton Company's cost of maintenance rose to $0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Explanation
Verified
Verified
1.
Flexible budget:
A flexible budget p...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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