Question

Bexar Company’s fixed overhead costs for the year are expected to be as follows: depreciation, $80,000; supervisory salaries, $90,000; property taxes and insurance, $25,000; and other fixed overhead, $15,000. Total fixed overhead is thus expected to be $210,000. Variable costs per unit are expected to be as follows: direct materials, $15.00; direct labor, $10.00; operating supplies, $2.00; indirect labor, $3.50; and other variable overhead costs, $2.50. Prepare a flexible budget for the following levels of production: 25,000 units, 30,000 units, and 35,000 units. What is the flexible budget formula for the year ended December 31?



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  • CreatedMarch 26, 2014
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