Exercise 22-7 (Part Level Submission) Appliance Possible Inc. (AP) is a manufact

Question

Exercise 22-7 (Part Level Submission) Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at praduction levels of 80,000, 91,000, and 102,000 units Variable costs $7 per unit 3 per unit $2 per unit Selling Fixed costs $130,000 $76,000 Manufacturing Prepare a fiexible budget for each of the possible production levels: 80,000, 91,000, and 102,000 units. (List variable costs before fixed costs.) POSSIBLE INC. Flexible Production Cost Budget Click if you would like to Show Work for this question Open Show Work LINK TO TEXT

Explanation / Answer

APPLIANCE POSSIBLE INC. Flexible Production Cost Budget Production level: Units 80000 91000 102000 Variable costs: Manufacturing 560000 637000 714000 Administrative 240000 273000 306000 Selling 160000 182000 204000 Total variable costs 960000 1092000 1224000 Fixed costs: Manufacturing 130000 130000 130000 Administrative 76000 76000 76000 Total fixed costs 206000 206000 206000 Total cost $ 1166000 1298000 1430000

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