Problem 21-1B Preparing and analyzinga flexible budget P1 Toho… Problem 21-1BPreparing a

Problem 21-1B Preparing and analyzinga flexible budget P1 Toho… Problem 21-1BPreparing and analyzinga flexible budgetP1Toho Company reports the following fixed budget. It is based on an expected production and sales volume of 20,000 units.Image transcription textFixed Budget For Year Ended December 31 Sales . … .. . . $3,000,000 Costs Direct materials . . …1,200,000 Direct labor. . . . .. .. 260,000… Show more… Show more  Required1.Classify all items listed in the fixed budget as variable or fixed. For variable costs, determine their amounts per unit. For fixed costs, determine their amounts for the year.2.Prepare flexible budgets (see Exhibit 21.3) at sales volumes of 18,000 and 24,000 units.Example: Ex. 21.3Image transcription textED105 Flexible Budgets VariableFlexible Budget for Unit Sales ofAmount Fixed For Month … Show more… Show more 3.The company’s business conditions are improving. One possible result is a sales volume of 28,000 units. Prepare the simple budgeted income statement (as in Exhibit 21.1) if 28,000 units are sold.Example: Ex. 21.1Image transcription textFixed Budget (one activity level)Flexible Budget (three activity levels)Sales (in units). . . ….. 100 S… Show more… Show more  Check (2) Budgeted income at 24,000 units, $372,400 Accounting Business Managerial Accounting BUS 4061 Share QuestionEmailCopy link