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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 produced increases?
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