Sarasota Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Sarasota Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $54,000 in the Fabricating Department and $43,200 in the Assembling Department. 2. At normal capacity of 54,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $172,800 in the Fabricating Department and $129,600 in the Assembling Department. (a) (b) Your answer is incorrect. Compute the total budgeted cost for each department, assuming actual direct labor hours worked were 57,240 and 50,760, in the Fabricating and Assembling Departments, respectively
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
