Harland Corporation currently produces cardboard boxes in an automated process. Expected production per month is 22 comma 000 units, direct material costs are $ 5.00 per unit, and manufacturing overhead costs are $ 13 comma 000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 12 comma 000 and 22 comma 000 units, respectively?

Question

Maliyah

Business

26 March, 17:08

Harland Corporation currently produces cardboard boxes in an automated process. Expected production per month is 22 comma 000 units, direct material costs are $ 5.00 per unit, and manufacturing overhead costs are $ 13 comma 000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 12 comma 000 and 22 comma 000 units, respectively?

+1

Answers (1)

Know the Answer?

Kathy · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Expected production per month is 22,000 units, direct material costs are $ 5.00 per unit, and manufacturing overhead costs are $ 13,000 per month. Manufacturing overhead is all fixed costs.

FLexible budget for 12,000 and 22,000 units.

12,000 units:

Total cost = 12,000*5 + 13,000 = 73,000

22,000 units:

Total cost = 22,000*5 + 13,000 = 123,000