Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. Round your answers to the nearest cent, if required. Nashler Company Flexible Budget Variable cost per unit Range of Production in Units 160,000 Range of Production in Units 170,000 Range of Production in Units 175,000 Production costs: Variable: Direct materials Direct labor Variable overhead: Supplies Maintenance Power Total variable costs Fixed overhead: Supervision Depreciation Other overhead
Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. Round your answers to the nearest cent, if required. Nashler Company Flexible Budget Variable cost per unit Range of Production in Units 160,000 Range of Production in Units 170,000 Range of Production in Units 175,000 Production costs: Variable: Direct materials Direct labor Variable overhead: Supplies Maintenance Power Total variable costs Fixed overhead: Supervision Depreciation Other overhead
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Flexible Budget for Varying Levels of Activity
Nashler Company has the following budgeted variable costs per unit produced:
| Direct materials | $7.10 |
| Direct labor | 1.54 |
| Variable overhead: | |
| Supplies | 0.23 |
| Maintenance | 0.19 |
| Power | 0.17 |
Transcribed Image Text:Flexible Budget for Varying Levels of Activity
Nashler Company has the following budgeted variable costs per unit produced:
Direct materials
$7.10
Direct labor
1.54
Variable overhead:
Supplies
0.23
Maintenance
0.19
Power
0.17
Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $75,000, and other overhead of $248,000.
Required:
1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. Round your answers to the nearest cent, if required.
Nashler Company
Flexible Budget
Variable cost per unit Range of Production in Units 160,000 Range of Production in Units 170,000 Range of Production in Units 175,000
Production costs:
Variable:
Direct materials
Direct labor
Variable overhead:
Supplies
Maintenance
Power
Total variable costs
Fixed overhead:
Supervision
Transcribed Image Text:Required:
1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. Round your answers to the nearest cent, if required.
Nashler Company
Flexible Budget
Variable cost per unit Range of Production in Units 160,000 Range of Production in Units 170,000 Range of Production in Units 175,000
Production costs:
Variable:
Direct materials $
Direct labor
Variable overhead:
Supplies
Maintenance
Power
Total variable costs
Fixed overhead:
Supervision
Depreciation
Other overhead
Total fixed costs
Total production costs
2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
Per-unit Product Cost
160,000
170,000
175,000
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