[vduchess]

Perkins Company provides the following data developed for its master budget:
Required:

sales price costs: $11.00 per unit

direct materials: $3.00 per unit

direct labor: $4.25 per unit

variable overhead: $0.50 per unit

factory depreciation: $12,000 per month

supervision: $11,000 per month

selling expense: $0.25 per unit

administrative cost: $9,000 per month

Prepare flexible budgets for sales of 20,000, 22,000 and 24,000 units. Use a contribution margin
format.

[pkprakash]

Sales units 20000 22000 24000
Unit price 11 11 11
Sales 220000 % 242000 % 264000 %
Direct material 60000.00 27.27 66000.00 27.27 72000.00 27.27
Direct labour 85000.00 38.64 93500.00 38.64 102000.00 38.64
Total cogs 145000.00 65.91 159500.00 65.91 174000.00 65.91
Gp 75000.00 34.09 82500.00 34.09 90000.00 34.09
Voh 10000.00 4.55 11000.00 4.55 12000.00 4.55
Super exp 11000 5.00 11000 4.55 11000 4.17
Admin exp 9000 4.09 9000 3.72 9000 3.41
Selling exp 5000.00 2.27 5500.00 2.27 6000.00 2.27
Depr 12000 5.45 12000 4.96 12000 4.55
Total op exp 47000.00 21.36 48500.00 20.04 50000.00 18.94
Np 28000.00 12.73 34000.00 14.05 40000.00 15.15

[pkprakash]

Sales units 20000
Unit price 11
Sales 220000 %
Direct material 60000.00 27.27
Direct labour 85000.00 38.64
Total cogs 145000.00 65.91
Gp 75000.00 34.09
Voh 10000.00 4.55
Super exp 11000 5.00
Admin exp 9000 4.09
Selling exp 5000.00 2.27
Depr 12000 5.45
Total op exp 47000.00 21.36
Np 28000.00 12.73