Reference no: EM131942181
Question - ABC Manufacturers uses flexible budgets that are based on the following production data for the month of July:
Direct materials - $8 per unit
Direct labor - $5 per unit
Electric power (variable) - $0.30 per unit
Electric power (fixed) - $4,000 per month
Supervisor salaries - $15,000 per month
Property taxes on production facility - $4,000 per month
Straight-line depreciation - $2,900 per month
Prepare a flexible budget for ABC, based on production of 10,000, 15,000, and 20,000 units.
Calculate the gross profit and net profit
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