FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Webber Company's fixed budget based on sales of 7,000 units follows.
Fixed Budget
Sales (7,000 units x $800 per unit)
Costs
Direct materials
Direct labor
Indirect materials.
Supervisor salary
Sales commissions
Shipping
Administrative salaries
Depreciation - Office equipment
Insurance
Office rent
Income
$ 5,600,000
560,000
980,000
350,000
130,000
280,000
308,000
420,000
70,000
40,000
$ 2,390,000
Prepare a flexible budget at activity levels
of 6,000 units and 8,000 units.
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Transcribed Image Text:Webber Company's fixed budget based on sales of 7,000 units follows. Fixed Budget Sales (7,000 units x $800 per unit) Costs Direct materials Direct labor Indirect materials. Supervisor salary Sales commissions Shipping Administrative salaries Depreciation - Office equipment Insurance Office rent Income $ 5,600,000 560,000 980,000 350,000 130,000 280,000 308,000 420,000 70,000 40,000 $ 2,390,000 Prepare a flexible budget at activity levels of 6,000 units and 8,000 units.
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