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Bdgeted amounts for the year materials - 2 leather strips

Question - Flexible Budget for Various Levels of Production

Budgeted amounts for the year:

Materials - 2 leather strips @ $7.00

Labor - 1.5 hr. @ $18.00

VOH - 1.5 hr. @ $1.20

FOH - $6,800

Required:

1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units.

2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. What happens to unit cost as the number of units produced increases?

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Accounting Basics: Bdgeted amounts for the year materials - 2 leather strips

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