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steveberrings steveberrings
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Margie's Creations manufactures ceramic figurines. In planning for the coming year, the budget committee is considering two different sales targets: 6,000 figurines and 8,000 figurines. Figurines sell for $39 each. The standard cost information for one figurine is as follows:

Direct materials$  6
Direct labor10
Variable overhead4
Variable operating costs2
​​
Annual expected fixed overhead costs$   4,000
Annual expected fixed operating costs42,000

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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WoodyNRexWoodyNRex
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More solutions for this book are available here
Variable cost of goods sold per unit = $6 + $10 + $4 = $20

6,000 Units8,000 Units
Revenue$234,000$312,000
Cost of goods sold​​
  Variable ($20)120,000160,000
  Fixed     4,000     4,000
Gross profit110,000148,000
Operating costs​​
  Variable ($2)12,00016,000
  Fixed   42,000    42,000
Operating income$  56,000$  90,000
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steveberrings Author
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A month ago
You make an excellent tutor!
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Thanks
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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