Brief Exercise 22-4 Gundy Company expects to produce 1,216,800 units of Product

Question

Brief Exercise 22-4 Gundy Company expects to produce 1,216,800 units of Product XX in 2017. Monthly production is expected to range from 76,500 to 126,500 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1.
Prepare a flexible manufacturing budget for the relevant range value using 25,000 unit increments. (List variable costs before fixed costs.)
GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017






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Brief Exercise 22-4 Gundy Company expects to produce 1,216,800 units of Product XX in 2017. Monthly production is expected to range from 76,500 to 126,500 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1 Prepare a flexible manufacturing budget for the relevant range value using 25,000 unit increments. (List variable costs before fixed costs.) GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017 Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of S used SAVE FOR LATER SBATY ANSWR

Explanation / Answer

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017 Activity Level Finished Goods                     76,500           1,01,500        1,26,500 Variable Cost Direct Material (4 P/U)                 3,06,000           4,06,000        5,06,000 Direct Labor (8 P/U)                 6,12,000           8,12,000      10,12,000 Overheads (10 P/U)                 7,65,000        10,15,000      12,65,000 Total Variable Cost (22 P/U)               16,83,000        22,33,000      27,83,000 Fixed Cost Depreciation                 4,05,600           4,05,600        4,05,600 Supervision               12,16,800        12,16,800      12,16,800 Total Fixed Cost               16,22,400        16,22,400      16,22,400 Total Cost               33,05,400        38,55,400      44,05,400 Calculation of Monthly Fixed Cost Depreciation =1216800*4/12           4,05,600 Supervision =1216800*1        12,16,800

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