y has two production departments, Fabricating and Assembling. At a department ma

Question

y has two production departments, Fabricating and Assembling. At a department managers' meeting, the contr total budgeted costs. Separate graphs based on direct labor hours are used for each deprtment h 1. At zero direct labor hours, the total budgeted cost line and the fixed cost line intersect 2. At normal capacity of 52,500 direct labor hours, the line drawn from the tot the vertical axis at $54,000 in the Fabricating Department and $44,000 in the al budgeted cost line intersects the vertical axis at $185,250 in the Fabricating Department, and $143,750 in the Assembling Department. State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, e.g. I Fabricating Department +total per direct labor hour Assembling Department 3+ total of s per direct labor hour Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 55,500 and 49,500, in the Fabricating and Assembiling Departments respectively Fabricating Department Assembling Department The total budgeted cost

Explanation / Answer

working Fabricating department Fixed cost $54,000 Variable cost per unit 2.50 (185250-54000)/52500 Asssembly Fixed cost $44,000 Variable cost per unit 1.90 (143750-44000)/52500 Ans 1 Fabricating dept $54000 Fixed cost + Variable cost of $2 per direct labor hour Assembly ept $44000 Fixed cost + Variable cost of $1.9 per direct labor hour total budgeted cost Fabnricating department 192750 54000+(2.5*55500) Assembly 138050 44000+(1.9*49500) Dear student there are three different question. I haave answered first one

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