Bowling Company budgeted the following amounts: Variable costs of production: Di
ID: 2475454 • Letter: B
Question
Bowling Company budgeted the following amounts:
Variable costs of production:
Direct materials
2 pounds @ $0.60 per pound
Direct labor
0.5 hr @ $16.50 per hour
VOH
0.4 hr @ $1.90 per hour
FOH:
Materials handling
$5,600
Depreciation
$2,300
Required
Prepare a flexible budget for 2,200 units, 2,700 units and 3,200 units
Refer to the list below for the exact wording of a label or an amount description within your budget.
Amount Descriptions
Depreciation
Direct labor
Direct materials
Materials handling
Total
Total conversion cost
Total cost of goods sold
Total prime cost
Variable overhead
Prepare a flexible budget for 2,200 units, 2,700 units and 3,200 units. (Note: Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
1
2,200 Units
2,700 Units
3,200 Units
2
Variable:
3
4
5
6
Fixed Overhead
7
8
9
Variable costs of production:
Direct materials
2 pounds @ $0.60 per pound
Direct labor
0.5 hr @ $16.50 per hour
VOH
0.4 hr @ $1.90 per hour
Explanation / Answer
flexible Budget 2,200 2,700 3,200 Variable expenses: direct materials@1.2 2640 3240 3840 direct labor @8.25 18150 22275 26400 VOH@.76 1672 2052 2432 total variable cost 22462 27567 32672 Fixed overehead Materials handling 5,600 5,600 5,600 Depreciation 2,300 2,300 2,300 total fixed cost 7,900 7,900 7,900 total cos t 30,362 35,467 40,572
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