Exercise 22-8 (Part Level Submission) Rensing Groomers is in the dog-grooming bu
ID: 2399929 • Letter: E
Question
Exercise 22-8 (Part Level Submission) Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas Grooming supplies (variable) Direct labor (variable) Overhead (mixed) y0s5x ys013x y$9,900 + $2x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Prepare a flexible budget for activity levels of 540, 580, and 680 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget Click if you would like to Show Work for this question: Open Show WorkExplanation / Answer
RENSING GROOMERS
FLEXIBLE BUDGET
Activity level:
Direct labor hours
540
580
680
Variable costs:
Grooming supplies
2700
2900
3400
Direct labor
7020
7540
8840
Overhead
540
580
680
Total variable costs
10260
11020
12920
Fixed costs:
Overhead
9900
9900
9900
Total fixed costs
19800
19800
19800
Total costs
30060
30820
32720
Activity level:
Direct labor hours
540
580
680
Variable costs:
Grooming supplies
2700
2900
3400
Direct labor
7020
7540
8840
Overhead
540
580
680
Total variable costs
10260
11020
12920
Fixed costs:
Overhead
9900
9900
9900
Total fixed costs
19800
19800
19800
Total costs
30060
30820
32720
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