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ellie425 ellie425
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A month ago
Ledbetter's Adventures manufactures outdoor camp ovens. In planning for the coming year, the budget committee is considering two different sales targets: 2,000 ovens or 2,600 ovens. Ovens sell for $280 each. The standard cost information for an oven is as follows:

Direct materials$90
Direct labor35
Variable overhead40
Variable operating costs10
​​
Annual expected fixed overhead costs $40,000
Annual expected fixed operating costs82,000
Required:

Prepare a flexible budget for the three sales levels under consideration. Omit the heading.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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naj2008hnaj2008h
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A month ago
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More solutions for this book are available here
Variable cost of goods sold per unit = $90 + $35 + $40 = $165

2,000 Units2,600 Units
Revenue$560,000$728,000
Cost of goods sold​​
  Variable ($165)330,000429,000
  Fixed   40,000   40,000
Gross profit190,000259,000
Operating costs​​
  Variable ($10)20,00026,000
  Fixed   82,000   82,000
Operating income$  88,000$151,000
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ellie425 Author
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A month ago
This calls for a celebration Person Raising Both Hands in Celebration
missnoname
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Yesterday
Good timing, thanks!
kaytee23
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2 hours ago
You make an excellent tutor!
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