Expected manufacturing costs for Imperial Data Devices are as follows:
Variable Costs Fixed Costs per Month
Direct material $7.00/unit Supervisory salaries $17,000
Direct labor 3.50/unit Factory depreciation 9,500
Variable overhead 1.80/unit Other factory costs 3,100
Estimate manufacturing costs for production levels of 13,000 units, 15,000 units, and 17,000 units per month.
The solution explains how to prepare a flexible budget at different production levels.