Glock, Inc., is looking for feedback on performance. The company compares the bu

Question

Glock, Inc., is looking for feedback on performance. The company compares the budget for the year with the actual costs.

Glock had the following budgeted data:

Budgeted variable costs per unit:

Direct materials $11.00

Direct labor 15.00

Supplies 0.80

Indirect labor 1.00

Power 0.10

Budgeted fixed overhead for 2010:

Supervision $ 9,000

Depreciation 13,000

Rent 12,000

Required:

Prepare a flexible budget in Excel for production costs for the following range of activity: 2,500 units; 4,000 units; 6,000 units.

Explanation / Answer

Flexible Budget Unit Cost 2500 Unit 4000 Unit 6000Unit Variable Cost Direct Material 11.00 27,500.00 44,000.00 66,000.00 Direct labor 15.00 37,500.00 60,000.00 90,000.00 Supplies 0.80 2,000.00 3,200.00 4,800.00 Indirect Labor 1.00 2,500.00 4,000.00 6,000.00 Power 0.10 250.00 400.00 600.00 Fixed Cost Supervision 9,000.00 9,000.00 9,000.00 Depreciation 13,000.00 13,000.00 13,000.00 Rent 12,000.00 12,000.00 12,000.00 Total Production cost 103,750.00 145,600.00 201,400.00

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.