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Exercise 11-31 Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials...

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Accounting

Exercise 11-31 Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials 2 leather strips @ $6.00 Labor 0.5 hr. @ $18.00 VOH 0.5 hr. @ $1.20 FOH $6,800 Required: 1. Prepare a ?exible budget for 3,500, 4,000, and 4,500 units. 2. Conceptual Connection: Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) What happens to unit cost as the number of units pro- duced increases?

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