Metaz Company expects to produce an average of 10,000 units of electric mixers each month. The company expects to operate at 10,000 direct
labor hours each month. Monthly production is expected to range from 10,000 units to 11,000 units.
Budgeted variable manufacturing costs per unit are direct materials at $5, direct labor at $6, and manufacturing overhead at $8.
The monthly budgeted fixed manufacturing costs for depreciation is $20,000, and for supervision, it is $10,000.
Required:
Prepare a flexible budget for the levels 10,000 units and 11,000 units.
Activity-level (finished products)
Metaz Company
Monthly Flexible Manufacturing Budget
10.000 units 11.000 units