McCabe Manufacturing Co.'s budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production, a flexible budget would show:

Instructions are listed below.

Explanation:

Giving the following information:

McCabe Manufacturing Co.'s budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production

We will assume that electricity varies with production.

Direct labor = 5*9,000 = 45,000

Electricity = 0.5*9,000 = 4,500

Fixed costs = 23,000

Total = $72,500