Question

Miller and Sons' static budget for 10,300 units of production includes $36,800 for direct materials, $48,500 for direct labor, variable utilities of $7,500, and supervisor salaries of $14,900. A flexible budget for 13,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. a.direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $17,880 b.direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $14,900 c.the same cost structure in total d.total variable costs of $107,700

Answer 1

b. direct materials of $49,662, direct labor of $65,451, utilities of $10,121, and supervisor salaries of $14,900

Step-by-step explanation:

The Supervisor's Salary is a fixed cost.

Therefore, a flexible budget for 13,900 units of production would show:

• Direct materials of $49,662,
• Direct labor of $65,451,
• Utilities of $10,121
• Supervisor salaries of $14,900