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2 August, 05:59

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:

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  1. 2 August, 06:07
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    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
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Home » Business » 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:
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