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- December 2, 2017 at 11:06 am #419638
Kaplan Text book, Budgeting, Test your understanding 14
A company manufactures cell phones and has developed a new cell phone called “H”. The max production capacity is 150000 units, management accountant is preparing an annual flexible budget
“000 “000 “000
Production(units) 100 120 150
Mat costs$ 700 840 1050
Lab costs 750 900 1125
Incremental fix costs 60 60 60What would be the flexed budget total production cost if production cost if production is 90% of maximum capacity?
The only part of this that I didn’t understood how to deal with incremental fixed costs kindly help please
December 2, 2017 at 3:28 pm #419693The fixed costs will remain at 60, by definition they will stay fixed.
December 2, 2017 at 3:36 pm #419696Thanks but if you see the solution their is Stepped supervisor costs God knows from where this cost is taken !
December 2, 2017 at 5:03 pm #419741I do not have the Kaplan text book and so without seeing the whole question I am unable to help.
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