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Problem 1: Give an estimate of manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month.
Doran Technologies produces a single product. Expected manufacturing costs are as follows:
Variable costs
Direct materials $4.00 per unit Direct labor $1.20 per unit Manufacturing overhead $0.95 per unit?Fixed costs per month
Depreciation $ 6,000 Supervisory salaries 13,500 Other fixed costs 3,850
Calculate the sales volume variance for variable costs.Static Budget, Actual budget:- sales volume, sales price, Variable cost, fixed cost.
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