Question: I just need help with finding the total fixed costs please! Evanson Company expects to produce 532,000 units of their product during the year. Monthly
I just need help with finding the total fixed costs please!
Evanson Company expects to produce 532,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows: M Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Prepare a flexible manufacturing budget using 20,000 unit increments. 80,000 $ Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units 40,000 60,000 Variable costs Direct materials $ 480,000 $ 720,000 Direct labor 520,000 780,000 Overhead 560,000 840,000 Total variable costs $ 1,560,000 $ 2,340,000 Fixed costs Total fixed costs Total costs 960,000 1,040,000 1,120,000 3,120,000 $
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