Perkins Company Provides the Following Data Developed for Its Master

question 124

Essay

Perkins Company provides the following data developed for its master budget:
$\begin{array}{ll}\text { Sales price } & \$ 11 \text { per unit } \\\text { Costs: } \\\text { Direct materials } & \$ 3 \text { per unit } \\\text { Direct labor } & \$ 4.25 \text { per unit } \\\text { Variable overhead } & \$ 0.50 \text { per unit } \\\text { Factory depreciation } & \$ 12,000 \text { per month } \\\text { Supervision } & \$ 11,000 \text { per month } \\\text { Selling expense } & \$ 0.25 \text { per unit } \\\text { Administrative cost } & \$ 9,000 \text { per month }\end{array}$ Prepare flexible budgets for sales of 20,000, 22,000, and 24,000 units.Use a contribution margin format.

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Definitions:

Rutherford

Refers to Ernest Rutherford, the scientist who proposed the model of the atom with a central nucleus surrounded by electrons.

Alpha Particles

A type of ionizing radiation consisting of two protons and two neutrons, emitted from the nucleus of an atom.

Gold Foil

Thin sheets of gold used in scientific experiments, most famously in Rutherford's gold foil experiment which led to the discovery of the nucleus.

Sub-Atomic Particle

Particles smaller than atoms, including protons, neutrons, and electrons.