Budgeted amounts for the year:

Materials	2 leather strips @ $7.50
Labor	0.5 hr @ $16.40
Variable overhead (VOH)	2.5 hr @ $1.60
Fixed overhead (FOH)	$6,800

Refer to the list below for the exact wording of an amount description within your budget.

Amount Descriptions
Fixed overhead
Fixed overhead spending variance
Fixed overhead volume variance
Labor
Materials
Static budget
Total
Variable overhead
Variable overhead spending variance

Required:

1) Prepare a flexible budget for 3,300, 3,800, and 4,300 units. (Note: Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Flexible Budget

1	Amount Description	Cost Formula	3,300 units	3,800 units	4,300 units
2
3
4
5
6

2)

2 Calculate the unit cost at 3,300, 3,800, and 4,300 units. (Note: Round unit costs to the nearest cent.)

	Unit cost at 3,300 units equals = $_________________
	Unit cost at 3,800 units equals = $_________________
	Unit cost at 4,300 units equals = $_________________