Calculator At the beginning of the period, the Cutting Department budgeted direct labor of $135,000, direct materials of $162,000 and fixed factory overhead of $13,000 for 7,700 hours of production. The department actually completed 10,500 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. a.$310,000 b.$418,000 c.$314,727 d.$422,727

Budgeted direct labor costs is $155,000 divided by budgeted hours of production of 9,000 would give standard direct labor costs of $17.22 per hour of production. Budgted direct material costs is $165,000 divided by budgeted hours of production of 9,000 would give standard direct material costs of $18.33 per hour of production. The standard cost of direct labor and direct material is used to calculate flexible budget.

Total costs consists of direct material costs plus direct labor costs plus fixed overhead costs. Direct material costs under flexible budgeting is calculated as actual hours of production of 10,000 multiplied by standard costs of $18.33 which would give budgeted costs of $183,333. Direct labor costs under flexible budgeting is calculated as actual hours of production of 10,000 multiplied by standard costs of $17.222 which would give budgeted costs of $172,222. Fixed overhead costs would remain same under flexible budgeting as fixed overhead does not change with change in volume of activity. Direct material costs of $183,333 plus direct labor costs of $172,222 plus fixed overhead costs of $15,000 would give total costs of $370,556 under flexible budgeting.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know