Hillman Products Produces and Sells Limited Edition Decorative Mugs Actual Production During April Was 5400 Units

Essay

Hillman Products produces and sells limited edition decorative mugs.The company's controller has the following information available from the static budget of one of the product lines for the month of April:
$\begin{array}{lr} \text {Estimated production } & \text {5000 units } \\ \text { Direct material per unit} & \text {12 gram } \\ \text { Direct material cost per unit} & \text { \$ .20 per gram} \\\end{array}$

Actual production during April was 5400 units.
Required: Prepare a flexible budget for the month of April.