his Question: 3 pts 3 or9 (0 complete)This Quiz: 20 pts p MetaPro Systems is a s

Question

his Question: 3 pts 3 or9 (0 complete)This Quiz: 20 pts p MetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $105 for each connector and fixed costs of $5,000 per month. MetaPro's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 80 connectors at a total cost of $26,000. MetaPro's flexible budget variance for total costs is O A. $12,600 U O B. $12,600 F O C. $2,100 U O D. $2.100 F

Explanation / Answer

Answer is $12,600 U

Cost formula for Total Costs = $105 * Number of units + $5,000

Actual number of units produced and sold = 80
Actual Total Costs = $26,000

Flexible Budget for Total Costs = $105 * 80 + $5,000
Flexible Budget for Total Costs = $13,400

Flexible Budget Variance for Total Costs = Actual Total Costs - Flexible Budget for Total Cost
Flexible Budget Variance for Total Costs = $26,000 - $13,400
Flexible Budget Variance for Total Costs = $12,600 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.