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Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. Round your labor rate to nearest cent.
$
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $159,600 and property tax of $56,000 for 7,600 hours of production. The department actually completed 9,500 hours of production.
Determine the budget for the department, assuming that it uses flexible budgeting.
$

Respuesta :

Answer and Explanation:

The calculation is given below:

Fabricating department

The budgeted cost is

= $9,280 ÷ 640 hours × 600 hours + $2,300

= $8,700 + $2,300

= $11,000

Grinding department

= $159,600 ÷ 7,600 hours × 9,500 hours + $56,000

= $199,500 + $56,000

= $255,500

In this way the budgeted cost should be determined

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