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Ahmad Company has the following budgeted variable costs per unit produced:
Direct materials
$5.50
Direct Labour
1.50
Variable overhead
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Supplies
0.60
Maintenance
0.30
Power
0.20
Budgeted fixed overhead costs per month include supervision of $86,000,depreciationof $72,000, and other overhead of $234,000.
Required:
a) flexible budget for all costs of production for 120,000
b) flexible budget for 180,000 units.
c)Show all the workings for total variable costs, total fixed cost and total production costs.
d)Calculate the cost per unit at the production level of 120,000
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