Flexible Budget. At normal capacity, Boulder Products Corp. manufactures 10,000 trail bikes. At that level, unit variable
Question:
Flexible Budget. At normal capacity, Boulder Products Corp. manufactures 10,000 trail bikes. At that level, unit variable costs for the Assembly Department are:
Direct materials.........................................................$30
Direct labor............................................................60
Indirect labor...........................................................30
Repairs and maintenance..................................................15
General factory expenses.................................................. 15
$................................................................. 150
Fixed expenses are $150,000 for indirect labor, $175,000 for repairs and maintenance, and $80,000 for general factory.
Required: Prepare a flexible budget for the Assembly Department at 70%, 80%, 90%, and 100% of normal capacity.
Cost Management A Strategic Emphasis
ISBN: 978-0077733773
7th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins