A summary of Tanner Companys flexible budget of manufacturin

A summary of Tanner Company\'s flexible budget of manufacturing costs follows: 10,000 Units Direct materials $30,000 Direct labor35,000 Variable factory overhead15,000 Fixed factory overhead 16,000 Total$96,000 What would the flexible budget of manufacturing costs be at a production volume of 12,000 units?

Solution

Flexible budget of manufacturing costs be at a production volume of 12,000 units

Direct Material (30000/10000) * 12000

36000

Direct Labour (35000/10000) * 12000

42000

Variable Factory O/H (15000/10000) * 12000

18000

Fixed factory O/H

16000

112000