Homework Soursecosts and 700 120 240 SolutionSupporting calculations I have
costs and 7.00 1.20 2.40
Solution
Supporting calculations: (I have shown the formulas in bracket in the first and third columns):
Budgeted Income statement:
| Factory overhead: | Office and officer\'s salaries: | ||
| Variable overhead ($4.80*3800 units) | 18,240.00 | Fixed portion | 7,800.00 |
| Depreciation | 4,000.00 | Variable portion ($7*3800 units) | 26,600.00 |
| Other | 1,400.00 | Total | 34,400.00 |
| Total | 23,640.00 | ||
| Supplies expenses: | |||
| Sales salaries and commissions: | Fixed portion | 500.00 | |
| Fixed portion | 12,800.00 | Variable portion ($1.2*3800 units) | 4,560.00 |
| Variable portion ($13.5*3800 units) | 51,300.00 | Total | 5,060.00 |
| Total | 64,100.00 | ||
| Misc. administrative expenses | |||
| Misc. selling expenses | Fixed portion | 400.00 | |
| Fixed portion | 1,000.00 | Variable portion ($2.4*3800 units) | 9,120.00 |
| Variable portion ($2.5*3800 units) | 9,500.00 | Total | 9,520.00 |
| Total | 10,500.00 |
