Question

Miller and Sons' static budget for 10,500 units of production includes $41,000 for direct materials, $50,300 for direct labor, variable utilities of $7,600, and supervisor salaries of $14,600. A flexible budget for 12,100 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. a.the same cost structure in total b.direct materials of $47,248, direct labor of $57,965, utilities of $8,758, and supervisor salaries of $14,600 c.direct materials of $47,248, direct labor of $57,965, utilities of $8,758, and supervisor salaries of $17,520 d.total variable costs of $113,500

Answer 1

b.direct materials of $47,248

Direct labor=$57,965

Variable Utilities=8,758

Supervisor salaries $14,600

Step-by-step explanation:

Computation of flexible budget

FLEXIBLE BUDGET

Direct materials

$41,000/10,500*12,100

Direct materials= $47,248

Direct labor=50,300/10500*12100

Direct labor=$57,965

Variable Utilities

=7600/10500*12100

Variable Utilities=8,758

Supervisor salaries $14,600 Fixed cost