Question

Solar Stars Inc. has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production:
Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range:
a. 8,000-unit level of sales and production
b. 12,000-unit level of sales and production



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  • CreatedMay 05, 2014
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