Venetian Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the...
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Accounting
Venetian Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate graphs based on direct labor hours are 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 $51,000 in the Fabricating Department and $43,000 in the Assembling Department. At normal capacity of 47.300 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $164,520 in the Fabricating Department, and $99,760 in the Assembling Department. 2. (a) 2 Your answer is partially correct. State the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, eg 1.25.) of $ per direct labor hour Fabricating Department = $ total Variable Costs Fixed Costs Assembling Department = $ of $ total per direct labor hour Fixed Costs Variable Costs
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