136. Big Bend Co. fixed budget for the year is shown below:
Sales (50,000 units)
$1,300,000
Cost of goods sold:
Direct materials
$150,000
Direct labor
450,000
Overhead (includes $2 per unit variable overhead)
240,000
840,000
Gross profit
$ 460,000
Selling expenses:
Sales commissions(all variable)
60,000
Rent (all fixed)
40,000
Insurance (all fixed)
35,000
General and administrative expenses:
Salaries (all fixed)
72,000
54,000
Depreciation (all fixed)
31,000
292,000
Net income from operations
$ 168,000
Prepare a flexible budget for Big Bend Co. that shows a detailed budget for its actual sales volume of 42,000 units. Use the contribution margin format.
Reference: 21_06
Jacques Company planned to use 18,000 pounds of material costing $2.50 per pound to make 4,000 units of its product. In actually making 4,000 units, the company used 18,800 pounds that cost $2.54 per pound.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here