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Flexible BudgetSeptember 7, 2015

Variable Cost Unit Levels of ActivityCost Item Per Unit 15,000 17,500 20,000Direct Materials $2.40 $36,000 $42,000 $48,000 Direct Labor $3.90 58,500 68,250 78,000 Variable Factory OverheadIndirect Materials $0.60 9,000 10,500 12,000 Indirect Labor $0.80 12,000 14,000 16,000 Utilities $0.40 6,000 7,000 8,000 Other $0.50 7,500 8,750 10,000 Total Variable Costs $8.60 $129,000 $150,500 $172,000

Fixed Factory OverheadSupervisory Salaries $19,000 $19,000 $19,000 Depreciation 15,000 15,000 15,000 Utilities 4,500 4,500 4,500 Other 10,900 10,900 10,900 Total Fixed Costs $49,400 $49,400 $49,400 Total Costs $178,400 $199,900 $221,400

Flexible Budget