Solved: Property taxes on production facility - 4000 per month, Accounting Basics

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Property taxes on production facility - 4000 per month

Question - ABC Manufacturers uses flexible budgets that are based on the following production data for the month of July:

Direct materials - $8 per unit

Direct labor - $5 per unit

Electric power (variable) - $0.30 per unit

Electric power (fixed) - $4,000 per month

Supervisor salaries - $15,000 per month

Property taxes on production facility - $4,000 per month

Straight-line depreciation - $2,900 per month

Prepare a flexible budget for ABC, based on production of 10,000, 15,000, and 20,000 units.

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Accounting Basics: Property taxes on production facility - 4000 per month

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