BE 24-4 Hannon Company expects to produce 1,200,000 units of Product XX in 2008. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1.
Prepare a flexible manufacturing budget for the relevant range value using 20,000 unit increments.
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