Flexible Budget [LO1]

Flexible Budget [LO1]

Pierr Manufacturing Inc. has provided the following information concerning its manufacturing costs:


For example, utilities should be $1,600 per month plus $0.15 per machine-hour. The company expects to work 4,000 machine-hours in July. Note that the company’s direct labor is a fixed cost.


Prepare the company’s planning budget for manufacturing costs for July.

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