accounting question regarding budgets 459643

Hannon Company expects to produce 1,200,000 units of Product XX in 2010. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Complete the flexible manufacturing budget for the relevant range value using 20,000 unit increments.

HANNON COMPANY

Monthly Flexible Manufacturing Budget

For the Year 2010

Activity level

Finished goods

Variable costs

Direct materials $ $ $

Direct labor

Overhead

Total variable costs

$

$

$

Fixed costs

Depreciation

Supervision

Total fixed costs

Total costs

$

$

$