Miller and Sons' static budget for 10,000 units of production includes $36,700 for direct materials, $45,400...

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Accounting

Miller and Sons' static budget for 10,000 units of productionincludes $36,700 for direct materials, $45,400 for direct labor,variable utilities of $6,100, and supervisor salaries of $16,500. Aflexible budget for 13,300 units of production would show
Round your final answer to the nearest dollar. Do not roundinterim calculations.
direct materials of $48,811, direct labor of $60,382, utilitiesof $8,113, and supervisor salaries of $16,500
direct materials of $48,811, direct labor of $60,382, utilitiesof $8,113, and supervisor salaries of $19,800
total variable costs of $104,700
the same cost structure in total

Answer & Explanation Solved by verified expert

3.9 Ratings (681 Votes)

Direct Materials,Direct labor and variable utilities are variable costs and Supervisor Salaries is fixed which will not change wirh the change in volume.

Qty	Amount for 10,000 Units= (A)	Varaible cost per unit (B)=A/10,000	Amount for 13300 units is ( C)=(B)*13300
Direct material	36700	3.67	$ 48,811.00
Direct Labor	45400	4.54	$ 60,382.00
Utilities	6100	0.61	$ 8,113.00

So the budget will show direct materials of $48,811, direct labor of $60,382, utilities of $8,113, and supervisor salaries of $16,500

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