1 NAME: Problem #1 S INPUT: Budgeted Amounts Variable costs: Direct materials Direct labor Factory overhead per unit 12.00 8.00 1.50 10 12 13 Fixed costs: Production supervisor salary Depreciation expense in dollars 0,000 30,000 15 16 17 18 19 PURPOSE: 20 The manager of the business wants to know what the total manufacturing costs will be at the 21 three different levels of production (i.e. producing 20,000 vs. 25,000 vs. 30,000) Budgeted Level (expected level 25,000 units 23 OUTPUT: Level of production Variable costs: Direct materials Direct labor Factory overhead Total Variable Costs Fixed Costs: Production supervisor salary Depreciation expense Total Fixed Costs TOTAL COSTS 20,000 25,000 30,000 NOTE:. Each of the highlighted cells should contain an Excel formula Formulas should use cell references to refer back to input data. 26 28 36 REQUIRED: 1. Create a flexi budget for the three levels of productions (20,000, 25,000, and 30,000 units). Be sure to use Excel formulas for all calculations in the flexi budget. Adjust spacing as needed. 41 2. Why would a business prepare a budget for three levels of production rather than one level