Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,300,000 Cost of Goods Sold Direct Material $800,000 $ Direct Labor 900,000 Variable Manufacturing Overhead 250,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,020,000 $ Gross Profit $1,280,000 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 950,000 Income Before Taxes $230,000 Taxes 69,000 Net Income/Loss $161,000 $

Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,300,000 Cost of Goods Sold Direct Material $800,000 $ Direct Labor 900,000 Variable Manufacturing Overhead 250,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,020,000 $ Gross Profit $1,280,000 Variable Sales and Administrative Expenses 100,000 Fixed Sales and Administrative Expenses 950,000 Income Before Taxes $230,000 Taxes 69,000 Net Income/Loss $161,000 $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12PA: Before the year began, the following static budget was developed for the estimated sales of 100,000....

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