Question

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:

Answer 1

Instructions are listed below.

Step-by-step 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