J&M provide the following budgeted expenses for producing 10,000 units of a toy, the following are the
Question:
J&M provide the following budgeted expenses for producing 10,000 units of a toy, the following are the budgeted expenses:
$ (Per Unit)
Direct material...............................30.00
Direct Labor...................................15.00
Variable overhead.........................12.50
Fixed overhead ($75,000)...............7.50
Variable expenses (direct)..............2.50
Selling expenses (10% fixed)..........7.50
Administration expenses ($ 25000 rigid for all production levels)........2.50
Distribution expenses (20% fixed)...............2.50
Total cost of sale per unit...........................80.00
Prepare a budget for the production of 12000, 14000 & 16000 units showing distinctly marginal cost & total cost.
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins