Tanya Inc.'s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000...
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Accounting
Tanya Inc.'s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $20,000. A flexible budget for 12,000 units of production would show:
A. Direct materials of $72,000, direct labor of $52,800, utilities of $5,000, and supervisor salaries of $20,000.
B. Total variable costs of $154,800.
C. Direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $20,000.
D. The same cost structure in total.
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