Hals Heating produces furnaces for commercial buildings The

Hal’s Heating produces furnaces for commercial buildings. The company’s master budget shows the following standards information.

Expected production for January:

300 furnaces

Direct materials

3 heating elements at $40 per element

Direct labor

35 hours per furnace at $18 per hour

Variable manufacturing overhead

35 direct labor hours per furnace at $15 per hour

Calculate the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead.

Assume Hal’s Heating produced 320 furnaces during January. Prepare a flexible budget for direct materials, direct labor, and variable manufacturing overhead.

Solution

standard cost per unit for direct materials, direct labor, and variable manufacturing overhead

Hal’s Heating produced 320 furnaces during January (flexible budget