Question: Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data:
Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data:
| Budgeted variable costs per unit: | |
| Direct materials | $ 7.00 |
| Direct labor | 10.00 |
| Supplies | 1.00 |
| Indirect labor | 0.50 |
| Power | 0.05 |
| Budgeted fixed overhead for 2018: | |
| Supervision | $4,000 |
| Depreciation | 3,000 |
| Rent | 2,000 |
What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?
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