Business, 06.12.2019 17:31, lucky1940

Christiansen and sons' flexible budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of $15,000. a flexible budget for 12,000 units of production would show:

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answered: maggiestevens5321

Direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000.

Explanation:

For 10,000 units:

Direct materials (DM) = $50,000

Direct labor (DL) = $44,000

Utilities (U) = $5,000

Supervisor salaries (S) = $15,000.

For 12,000 units:

Direct materials (DM):

$DM=\$50,000*\frac{12,000}{10,000}\\DM = \$60,000$

Direct labor (DL):

$DL=\$44,000*\frac{12,000}{10,000}\\DL = \$52,800$

Utilities (U) = $5,000

$U=\$5,000*\frac{12,000}{10,000}\\U = \$6,000$

Supervisor salaries (S) = $15,000.

Salaries don't rely on production volume and, thus, should stay the same.

answered: Guest

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explanation:

answered: Guest

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