Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. m&m company decided to prepare a flexible b

1. M&M Company decided to prepare a flexible budget using the following data: a) Sales...

90.2K

Verified Solution

Question

Accounting

1. M&M Company decided to prepare a flexible budget using the following data:

a) Sales price-$50 per unit

b) Direct Materials -$10 per unit

c) Direct labor-$20 per unit

d) Variable Overhead-$5 per unit

e) Fixed Overhead $100,000

Prepare a flexible budget using the numbers listed above for 20,000, 30,000, and 40,000 units. Make sure your budget includes Contribution margin and Net Income.

2. M&M Company sold 30,000 units. Here are their actual numbers. Determine how much each actual number differs from the numbers budgeted for sales of 30000. Indicate whether the difference is favorable or unfavorable.

  1. Sales $1,500,000
  2. Direct Materials -$600,000
  3. Direct Labor-$450,000
  4. Variable Overhead-$140000
  5. Fixed Overhead -$105,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students