The manager of Power Industries reviewed the financial information for the year just completed. Sales volume came in lower than expected at 5,000 units, while it budgeted for sales of 5,500 units. Power's variable cost per unit (comprised of DM, DL, and variable-MOH) was $20, the unit sales price expected was $45, and fixed-MOH costs totaled $110,000. Prepare a flexible budget to determine Power's budgeted operating profit.

Question

Quizplus · Accepted Answer

The Answer of The manager of Power Industries reviewed the financial information for the year just completed. Sales volume came in lower than expected at 5,000 units, while it budgeted for sales of 5,500 units. Power's variable cost per unit (comprised of DM, DL, and variable-MOH) was $20, the unit sales price expected was $45, and fixed-MOH costs totaled $110,000. Prepare a flexible budget to determine Power's budgeted operating profit.

The Manager of Power Industries Reviewed the Financial Information for the Year