Rounding$/$Entry Rules:

Use the rounding rules noted below, for each part of the question.

Question:

Lemieux Inc. $("$the company"$)$ is a manufacturer of shoes.

The upcoming year is expected to be a good one but management wants to do some scenario planning and see what the financial results would look like under different production levels.

The company has budgeted the following costs for one pair of shoes:

Materials $1$ metre of leather @ $$100\mathrm{.}00$ per metre

Labour $4\mathrm{.}5$ hours of direct labour @ $$17\mathrm{.}00$ per hour

Variable overhead $4\mathrm{.}5$ hours of direct labour @ $$2\mathrm{.}00$ per hour

Fixed overhead is estimated at $$9,000$ per year.

Required:

Prepare a flexible budget for the year for two levels of production: $2,500$ and $3,000$ units.

Using your solution answer the following questions.

Part A:

If the company produced $2,500$ units, total production costs per the flexible budget would be $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Round your answer to the nearest DOLLAR.

For example:

Enter $$49,562\mathrm{.}52$ as $49563$

Enter $$49,562\mathrm{.}42$ as $49562$

Enter $$49,562\mathrm{.}00$ as $49562$

If the company produced $2,500$ units, the cost PER UNIT would be $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Round your answer to the nearest PENNY $(2$ decimal places$).$

For example:

Enter $28\mathrm{.}8429$ as $28\mathrm{.}84$

Enter $28\mathrm{.}8452$ as $28\mathrm{.}85$

Enter $28\mathrm{.}0000$ as $28\mathrm{.}00$

Part B:

If the company produced $3,000$ units, total production costs per the flexible budget would be $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Round your answer to the nearest DOLLAR.

Round your answer to the nearest DOLLAR.

For example:

Enter $$49,562\mathrm{.}52$ as $49563$

Enter $$49,562\mathrm{.}42$ as $49562$

Enter $$49,562\mathrm{.}00$ as $49562$

If the company produced $3,000$ units, the cost PER UNIT would be $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Round your answer to the nearest PENNY $(2$ decimal places$).$

For example:

Enter $28\mathrm{.}8429$ as $28\mathrm{.}84$

Enter $28\mathrm{.}8452$ as $28\mathrm{.}85$

Enter $28\mathrm{.}0000$ as $28\mathrm{.}00$