The manager of Bonita, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 4,900 units, compared with budgeted sales of 5,400 units. Bonita's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $52 per unit. Budgeted fixed costs totaled $137,100. There were no variable SG&A costs. Prepare Bonita's flexible budget for the year just ended. V:

The manager of Bonita, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 4,900 units, compared with budgeted sales of 5,400 units. Bonita's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $52 per unit. Budgeted fixed costs totaled $137,100. There were no variable SG&A costs. Prepare Bonita's flexible budget for the year just ended. V:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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