Before the year began, North Co developed the following static budget for the estimated sales of...

 

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Before the year began, North Co developed the following static budget for the estimated sales of 36,000 units. Sales are higher than expected and management needs to revise its budget. NorthCo Units sold Static Budget For Year Ended January 31, 2019 Sales 36,000 $1,116,000 Cost of goods sold Direct material 72,000 Direct labor 252,000 Variable manufacturing overhead 144,000 Fixed manufacturing overhead. 33,000 Total cost of goods sold. $501,000 Gross profit $615,000 Variable sales and administration expenses 72,000 Fixed sales and administration expenses. 49,000 494,000 39,520 $454,480 Income before taxes Taxes Net income Prepare a flexible budget for 57,000 and 69,000 units of sales. Assume that the tax rate is 8% of the income. NorthCo Flexible Budget For Year Ended January 31, 2019 Units sold Sales 57,000 69,000 Per-unit cost Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead_ Total cost of goods sold. Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Not income Before the year began, North Co developed the following static budget for the estimated sales of 36,000 units. Sales are higher than expected and management needs to revise its budget. NorthCo Units sold Static Budget For Year Ended January 31, 2019 Sales 36,000 $1,116,000 Cost of goods sold Direct material 72,000 Direct labor 252,000 Variable manufacturing overhead 144,000 Fixed manufacturing overhead. 33,000 Total cost of goods sold. $501,000 Gross profit $615,000 Variable sales and administration expenses 72,000 Fixed sales and administration expenses. 49,000 494,000 39,520 $454,480 Income before taxes Taxes Net income Prepare a flexible budget for 57,000 and 69,000 units of sales. Assume that the tax rate is 8% of the income. NorthCo Flexible Budget For Year Ended January 31, 2019 Units sold Sales 57,000 69,000 Per-unit cost Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead_ Total cost of goods sold. Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Not income

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Answer To prepare a flexible budget for sales of 57000 and 69000 units we need to calculate the perunit cost of goods sold and other expenses based on the static budget First lets calculate the peruni... View the full answer