Problem - Bowling Company budgeted the following amounts:
Direct materials 3 pounds @ $0.60 per pound
Direct labor 0.5 hr @ $16.00 per hour
VOH 0.5 hr @ $2.20 per hour
Materials handling $6,200
Depreciation $2,600
Required: Prepare a flexible budget for 2,500 units, 3,000 units and 3,500 units.
Refer to the list below for the exact wording of a label or an amount description within your budget.
Depreciation
Direct labor
Direct materials
Materials handling
Total
Total conversion cost
Total cost of goods sold
Total prime cost
Variable overhead