Question - Jonas Company is a manufacturer. Following is its production cost budget for the expected production of 8,000 units of product.
Direct Materials $26,000
Direct Labor 32,800
Variable Factory Overhead 14,000
Total: $72,800
Jonas is considering different levels of production, 7,500 units, 10,000 units, and 12,000 units.
Required: Write a flexible budget for the company at the three proposed levels of production and enter on the lines the total costs.
Total costs at 7,500 units:
Total costs at 10,000 units:
Total costs at 12,000 units: