Nashler company has following budgeted variable costs per

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Reference no: EM13389772

Nashler company has the following budgeted variable costs per unit produced:

Direct materials: 7.20

Direct labor: 1.54

Variable overhead:

Supplies: 0.23

Maintenance: 0.19

Power: 0.18

Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000.

Required:

1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units and 175,000 units.

2. What is the per-unit total product cost for each of the production levels from requirement 1?

3. What if Nashler company's cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in requirement 2?

Reference no: EM13389772

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