1. Kamie Corp prepared a master budget that included $14,245 for direct material

Question

1. Kamie Corp prepared a master budget that included $14,245 for direct materials, $28,500 for direct labor, $12,210 for variable overhead, and $39,300 for fixed overhead. Wadjase Corp planned to sell 4,070 units during the period, but actually sold 4,360 units. How much would variable overhead cost be on a flexible budget for the period based on actual sales?

2. Kamie Corp prepared a master budget that included $17,800 for direct materials, $28,000 for direct labor, $15,000 for variable overhead, and $38,700 for fixed overhead. Wadjase Corp planned to sell 4,000 units during the period, but actually sold 4,300 units. How much would direct materials cost be on a flexible budget for the period based on actual sales?

Explanation / Answer

Hi,

Please find the answers as follows:

Part 1

= Variable Overhead Cost would be = 12210/4070*4360 = 13080

Part 2

=Direct Material Cost = 17800/4000*4300 = 19135

Thanks.

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