Flexible Budgeting-Manufacturing Costs

Essay

Flexible budgeting-manufacturing costs.As a result of studying past cost behavior and adjusting for expected price increases in the future,Goldman Company estimates that its manufacturing costs will be as follows:

Required:
Goldman uses these estimates for planning and control purposes.
a.Goldman expects to produce 25,000 units during the next period.Prepare a schedule of the expected manufacturing costs.
b.Suppose that Goldman produces only 18,000 units during the next period.Prepare a flexible budget of manufacturing costs for the 18,000-unit level of activity.
c.Suppose that Goldman produces 28,000 units during the next period.Prepare a flexible budget of manufacturing costs for the 28,000-unit level of activity.
(Goldman Company;flexible budgeting-manufacturing costs. )