Question

Miller and Sons' static budget for 9,500 units of production includes $44,100 for direct materials, $52,600 for direct labor, variable utilities of $6,200, and supervisor salaries of $15,700. A flexible budget for 13,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations

Answer 1

The correct answer to the following question is , direct material is equal to $64,525, direct labor is equal to $76,962, variable utility is equal to $9072 and supervisor salary is $15,700

Step-by-step explanation:

Given information -

Budget for 9500 units of production, where

Direct material = $44,100

Direct labor = $52,600

Variable utilities = $6,200

Supervisor salaries which is a fixed cost is = $ 15,700

Calculating the direct material, direct labor and variable utilities when budget is of 13,900 units -

Direct material = $44,100 x 13,900 / 9500

= $64,525 ( approximately )

Direct labor = $52,600 x 13,900 / 9500

=$ 76,962 (approximately )

Variable utilities = $6,200 x 13,900 / 9500

= $9072 (approximately )

Supervisor salaries is fixed cost = $15,700