Perkins Company provides the following data developed for its master budget:
$$\begin{array} { l l }
\text { Sales price } & \$ 11 \text { per unit } \
\text { Costs: } & \
\text { Direct materials } & \$ 3 \text { per unit } \
\text { Direct labor } & \$ 4.25 \text { per unit }\
\text { Variable overhead } & \$ 0.50 \mathrm { per } \text { unit } \
\text { Factory depreciation } &\$ 12,000 \mathrm { per } \text { month } \
\text { Supervision } & \$ 1,000 \mathrm { per } \text { month } \
\text { Selling expense } &\$ 0.25 \mathrm { per } \text { unit }\
\text { Adrninistrative cost } & \$ 9,000 \mathrm { per } \text { month }
\end{array}$$
Prepare flexible budgets for sales of 20,000,22,000,and 24,000 units.Use a contribution margin format.

Question

Perkins Company provides the following data developed for its master budget:
 $$\begin{array} { l l } 
\text { Sales price } & \$ 11 \text { per unit } \
\text { Costs: } &  \
\text { Direct materials } & \$ 3 \text { per unit } \ 
\text { Direct labor } &  \$ 4.25 \text { per unit }\
\text { Variable overhead } & \$ 0.50 \mathrm { per } \text { unit } \
\text { Factory depreciation } &\$ 12,000 \mathrm { per } \text { month } \
\text { Supervision } &  \$ 1,000 \mathrm { per } \text { month } \
\text { Selling expense } &\$ 0.25 \mathrm { per } \text { unit }\
\text { Adrninistrative cost } & \$ 9,000 \mathrm { per } \text { month } 
\end{array}$$ 
Prepare flexible budgets for sales of 20,000,22,000,and 24,000 units.Use a contribution margin format.

Quizplus · Accepted Answer

The Answer of Perkins Company provides the following data developed for its master budget:
 $$\begin{array} { l l } 
\text { Sales price } & \$ 11 \text { per unit } \
\text { Costs: } &  \
\text { Direct materials } & \$ 3 \text { per unit } \ 
\text { Direct labor } &  \$ 4.25 \text { per unit }\
\text { Variable overhead } & \$ 0.50 \mathrm { per } \text { unit } \
\text { Factory depreciation } &\$ 12,000 \mathrm { per } \text { month } \
\text { Supervision } &  \$ 1,000 \mathrm { per } \text { month } \
\text { Selling expense } &\$ 0.25 \mathrm { per } \text { unit }\
\text { Adrninistrative cost } & \$ 9,000 \mathrm { per } \text { month } 
\end{array}$$ 
Prepare flexible budgets for sales of 20,000,22,000,and 24,000 units.Use a contribution margin format.

Perkins Company Provides the Following Data Developed for Its Master