Exercise $7-7$

Determining Flexible Budget Amounts

Starburst Inc. has the following items and amounts as part of its master budget at the $10,000-$unit level of sales and production:

Sales revenue $q,$

Direct materials. $q,$

Direct labor. $q,$

Variable factory overhead. $q,$

Fixed factory overhead. $q,$

$$100,000$

$20,000$

$15,000$

$10,000$

$25,000$

Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range: $($Hint: You must first determine the unit selling price and certain unit costs.$)$

a$.8,000-$unit level of sales and production

Sales $ $$ QUESTION $6$

Direct Materials

Direct Labor

Variable Factory Overhead

$ $$

$$ QUESTION $7$

Fixed Factory Overhead

$$

$ $$ QUESTION $8$

b$.12,000-$unit level of sales and production

Sales

$ $$

Direct Materials $$ QUESTION $9$

Direct Labor $$

Variable Factory Overhead $$ QUESTION $10$

Fixed Factory Overhead $$