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4{7113 Axrigrrnent PrintMav 11. Problem 21-3A Part 3 3. The company’s business conditions are impmling. One prrssible result is a sales \olume of approximately 18,fi)0 units. The company president is confident that this \plume is within the rcle\Bnt range of existing capacity. Hor,v much \ilould operating income il:crease orgr the 2011 budgeled amount of $379,000 if lhis lercl is reached without increasing capacity? {Do not round intermediate calculatione, Omit the “$” sign in your reryon*.) Operating income increase $ ldVorksheet Fra$leni ?f -34 Parf 3 Learning ilbjective: 21-F1 Prepare a *exible budget and interpret a flexible budget perf*rmance report. Difficulty Mediurn 12. Probfem 21-3A Part 4 4. An unhrcrable change in business is rcmotely possible; in this case, pDduction and sales rolume br 2011 could fall to 12,000 units. Ho,v much income (or loss) tom operations would occur if sales \Dlume hlls to this lelel? flnput the amount as positive value. Do nol round intermediate calculations Omit the ‘$” dgn in your response.) ffi$_ Worksheet Pr*bJem ?1-34 Part 4 Learning Object r{}: 21-P1 Prepsre a flexible budget and interpret a flr:xible budget performance repor”t. Problem 21-5A Flexible budget preparation; computatian af mateilals, labar, and overhead wriances: and overhead variance repart L.Q. Pl, P2, P3, C2 [fhe fallowing intomalian applies b the guestions dlsplayed belowJ Kwikeee Cornpany set the following standard costs br one unit of its product. Direct matedals {{3.0 hs. @$+.o per h.) $ 12.00 Dir€ctlabor(1.5hrs. @$14.0perhr.) 21.0O Orerhead (1.5 hns. @$18.50 perhr.) 27.75 Total sfandard cost $ 60.75 The F€detemined o\,ethead rate ($18.50 psr direct labor hour) is basr:d on an expected wlume of 75% of the factory’s capacity of 20,000 units pet month. Fdlowing are the conrpany’s budgeted oerhead costs per month at the 75% le\el-Owrhead Budget (75% Capacity) Variable owrhead costs lndirect materials lndirect labor Power Repairs and maintenance Total wriable…