Determine direct materials in the flexible budget


Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in itsbudgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activitywas 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and itsactual results for August:

Data used in budgeting: Fixed Variable

element element

per month per month

Revenue .......................................................................... $0.00 $29.10

Direct labor...................................................................... $0.00 $3.60

Direct material .................................................................. 0.00 10.60

Manufacturing overhead ......................................... 47,000.00 1.20

Selling and administrative expenses........................ 21,500.00 0.80

Total expenses........................................................ $68,500.00 $16.20

Actual results for August:

Revenue ............................................................... $201,053

Direct labor............................................................... 24,698

Direct material ......................................................... 72,588

Manufacturing overhead ......................................... 55,606

Selling and administrative expenses........................ 25,554

 


determine direct materials in the flexible budget for August would be closest to ?

what the manufacturing overhead in the flexible budget for August would be closest to ?

what the net operating income in the flexible budget for August would be closest to ?

 

 

 

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Accounting Basics: Determine direct materials in the flexible budget
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