Prepare a Flexible Budget for Cedar Jeans Company Using Production

Essay

Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced.The following is additional information 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