Before the year began, NorthCo developed the following static budget for the estimated sales of 29,000...

 

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Before the year began, NorthCo developed the following static budget for the estimated sales of 29,000 units. Sales are higher than expected and management needs to revise its budget. North Co Static Budget For Year Ended September 30, 2019 Units sold Sales 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 Net income 29,000 $1,044,000 232,000 290,000 29,000 39,000 $590,000 $454,000 29,000 37,000 388,000 31,040 $356,960 Prepare a flexible budget for 41,000 and 49,000 units of sales. Assume that the tax rate is 8% of the income. Units sold Sales Cost of goods sold Direct material Direct labor NorthCo Flexible Budget For Year Ended September 30, 2019 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 Net income Per-unit cost 41,000 49,000 Before the year began, NorthCo developed the following static budget for the estimated sales of 29,000 units. Sales are higher than expected and management needs to revise its budget. North Co Static Budget For Year Ended September 30, 2019 Units sold Sales 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 Net income 29,000 $1,044,000 232,000 290,000 29,000 39,000 $590,000 $454,000 29,000 37,000 388,000 31,040 $356,960 Prepare a flexible budget for 41,000 and 49,000 units of sales. Assume that the tax rate is 8% of the income. Units sold Sales Cost of goods sold Direct material Direct labor NorthCo Flexible Budget For Year Ended September 30, 2019 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 Net income Per-unit cost 41,000 49,000