Top Posters
Since Sunday
20
11
b
8
7
l
7
f
7
d
7
r
7
6
p
6
A
6
s
6
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
ellie425 ellie425
wrote...
Go to Answer
Posts: 87
Rep: 0 0
4 months 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
Author:
Read 40 times
1 Reply
Replies
Answer verified by a subject expert
naj2008hnaj2008h
wrote...
#1
Posts: 84
Rep: 1 0
4 months ago
Sign in or Sign up in seconds to unlock everything for free
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
1

Related Topics

ellie425 Author
wrote...

4 months ago
Thanks
SupremeDJ
wrote...

Yesterday
Correct Slight Smile TY
Roselalo
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  351 People Browsing
 307 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 767
  
 248
  
 179
Your Opinion
What's your favorite funny biology word?
Votes: 86
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?