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The following static budget was estimated for sales of 50,000 units. Sales are higher ...

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Accounting

The following static budget was estimated for sales of 50,000 units. Sales are higher
than expected and managmenet needs to revise its budget. Prepare a flexible budget
for 100,000 units in sales
Use the following:
Unit Sales 50,000
Sales Revenue $1,250,000
Cost of Goods Sold:
Direct Material 450,000
Direct Labor 500,000
Variable Manufacturing Overhead 125,000
Fixed Manufacturing Overhead 32,000
Total Cost of Goods Sold 1,107,000
Gross Profit $143,000
Variable Sales and Administrative Expense 50,000
Fixed Sales and Administrative Expense 105,000
Income Before Taxes (12,000)
Tax Benefit (Expense)1,800
Net Income (Loss) $(10,200)
Use tax rate of 21%
Subtract your income tax expense to get net income.

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