Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and fixed, $604,800 per quarter. What are the budgeted earnings for next quarter? (Do not consider federal income taxes.)
Show the analysis in a table format. Show me how your interpretation of the information presented in the table.?
Houston Corporation considers materials and labor to be completely variable costs. Expected production for the year is 50,000 units.
- At that level of production, direct materials cost is budgeted at $198,000, and direct labor cost is budgeted at $450,000. Create a flexible budget for materials and labor for possible production levels of 52,500, 60,000, and 67,500 units of product.
- Assume that in the previous exercise the actual production was 60,000 units, materials cost was $247,000, and labor cost was $510,000. What are the budget variances?
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