Prepare a Flexible Production Budget for the Year Ending December

Essay

Prepare a flexible production budget for the year ending December 31 for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following additional information is necessary to complete the budget:
Variable costs:
Direct labor ($6.00 per unit)Direct materials ($8.00 per unit)Variable manufacturing costs ($2.50 per unit)Fixed costs:
Supervisor's salaries
$80,000
Rent
12,000
Depreciation on equipment
24,000