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Question - Schoening Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for January.
Fixed Element per Month Variable Element per Container Refurbished Actual Total for January
Revenue $4,100 $158,600
Employee salaries and wages $50,600 $1,100 $92,700
Refurbishing materials $700 $27,000
Other expenses $41,200 $40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January. Find the total expenses in the flexible budget for January?
Montson, Inc. produces a product requiring three square feet at $6 per square foot. If the desired ending inventory is $18,000 and the beginning inventory is $36,000, how many units must Montson produce to make direct materials purchases $54,000?
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