Reference no: EM13940471
1. Ina Machine Company's flexible budget is given below:
INA MACHINE COMPANY
Flexible Budget
Conversion
Cost
Volume
Number of Units
Cost
Formula
5,000
6,000
7,000
Direct labor
$7.00
$35,000
$42,000
$49,000
Variable overhead costs:
Supplies
0.90
4,500
5,400
6,300
Utilities
0.15
750
900
1,050
Maintenance
1.25
6,250
7,500
8,750
Total
$9.30
$46,500
$55,800
$65,100
The production budgeted for September was 6,000 units. During the month, the company produced 6,200 units. The conversion costs incurred were:
Direct labor
$44,300
Supplies
6,120
Utilities
965
Maintenance
7,920
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