Question

7) Dynozz Corporation currently produces cardboard boxes in an automated process. Expected production per month is 15,000 units, direct material costs are $0.50 per unit, and manufacturing overhead costs are $15,000 per month. Manufacturing overhead is all fixed costs. What are the flexible budget for 10,000 and 15,000 units, respectively

Answer 1

Instructions are below.

Step-by-step explanation:

Giving the following information:

Variable cost:

Direct material= $0.50 per unit

Fixed cost:

Fixed overhead= $15,000

Total cost for 10,000 units:

Variable cost= 0.50*10,000= 5,000

Fixed costs= 15,000

Total cost= $20,000

Total cost for 15,000 units:

Variable cost= 0.50*15,000= 7,500

Fixed costs= 15,000

Total cost= $22,500