P25-3A - Homework # 12 P25-3A a) = Fixed Costs + *Total...

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Unformatted text preview: Homework # 12 P25-3A a) = Fixed Costs + *Total variable cost per unit times activity level b) For the activity level of 50 000 units per month Variable Cost Computation Direct materials 35 000/50 000 0.7 Direct labor 50 000/50 000 1.0 Indirect materials 15 000/50 000 0.3 Indirect labor 12 500/50 000 0.25 Utilities 7 500/50 000 0.15 Maintanance 5 000/50 000 0.1 Total 2.5 Chambers Company Flexible Budget Report Packaging Department For the Month Ended May 31, 2005 Difference Budget Actual Activity level Activity level 55,000 55,000 Variable costs Direct materials 38500 37500 1000 F Direct labor 55000 53000 2000 F Indirect materials 16500 15200 1300 F Indirect labor 13750 13000 750 F Utilities 8250 7100 1150 F Maintanance 5500 5200 300 F Total variable 137500 131000 6500 F Fixed costs Rent 8,000 8,000 Supervision 9,000 9,000 Depreciation 5,000 5,000 Total fixed 22,000 22,000 Total costs 159500 153000 6500 F Flexible report provide better basis for evaluating performance because it indicates that Chambers Co...
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This note was uploaded on 09/20/2011 for the course ACCT 221 taught by Professor Prof during the Spring '10 term at Alabama State University.

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P25-3A - Homework # 12 P25-3A a) = Fixed Costs + *Total...

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