Durham Manufacturing Co.'s static budget at 10,000 units of production includes $50,000 for direct materials and...

 

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Durham Manufacturing Co.'s static budget at 10,000 units of production includes $50,000 for direct materials and $100,000 for variable manufacturing overhead. Total fixed costs are $30,000. The relevant range for Durham is 5,000 units to 50,000 units. If the sales are increased by 10%, the flexible budget would show: [ (3 Points) Increase in total variable costs to $165,000 and fixed costs remain the same, i.e.. $30,000 Total variable costs of $160,000, and fixed costs remain the same, i.e., $30,000 Total costs will remain the same, as the 10% increase in sales appears to be within the relevant range. Increase in total variable costs to $165,000 and increase in fixed costs to $33,000 Durham Manufacturing Co.'s static budget at 10,000 units of production includes $50,000 for direct materials and $100,000 for variable manufacturing overhead. Total fixed costs are $30,000. The relevant range for Durham is 5,000 units to 50,000 units. If the sales are increased by 10%, the flexible budget would show: [ (3 Points) Increase in total variable costs to $165,000 and fixed costs remain the same, i.e.. $30,000 Total variable costs of $160,000, and fixed costs remain the same, i.e., $30,000 Total costs will remain the same, as the 10% increase in sales appears to be within the relevant range. Increase in total variable costs to $165,000 and increase in fixed costs to $33,000

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