At zero direct labor hours, the total budgeted cost line and the fixed cost line intersect the vertical axis at $51,000 in the Fabricating Department and $37,000 in the Assembling Department.

Venetian Company has two production departments, Fabricating and Assembling. At a department managers’ meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate graphs based on direct labor hours are used for each department. The graphs show the following.

1.

2.At normal capacity of 46,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $143,000 in the Fabricating Department, and $115,200 in the Assembling Department.

I need the total budgeted cost formula for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.)

Fabricating Department = 51,000( Fixed Costs) + total fixed Costs or Variable Costs of $____________ per direct labor hour

Assembling Department = $ 37000 (fixed costs) + total Fixed Costs or Variable Costs of $____________ per direct labor hour

I need the total budgeted cost for each department, assuming actual direct labor hours worked were 49,000 and 43,000, in the Fabricating and Assembling Departments, respectively.

 

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