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Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment depreciation of $18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.

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abiolataiwo2015

The budget for the department, assuming that it uses flexible budgeting is: $89,000.

Total Department Costs

First step is to calculate the direct labor cost

Direct Labor =2350 hours x( $72,000/2400)

Direct Labor=$70500

Second step is to calculate the Total Department Costs

Total Department Costs=$70,500+$18,500

Total Department Costs=$89,000

Therefore the budget for the department, assuming that it uses flexible budgeting is: $89,000.

Learn more about Total Department Costs here:https://brainly.com/question/26656438

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