Based on predicted production of 6,600 units, a company anticipates $81,000 of f

Question

Based on predicted production of 6,600 units, a company anticipates $81,000 of fixed costs and $49,500 of variable costs. The flexible budget amounts of fixed and variable costs for 5,400 units are:

- $66,273 fixed and $49,500 variable.

- $81,000 fixed and $49,500 variable.

- $40,500 fixed and $81,000 variable.

- $81,000 fixed and $40,500 variable.

- $66,273 fixed and $40,500 variable.

Based on predicted production of 6,600 units, a company anticipates $81,000 of fixed costs and $49,500 of variable costs. The flexible budget amounts of fixed and variable costs for 5,400 units are:

Explanation / Answer

Deatails Amt $/Unit Budgeted production units                  6,600 Budgeted variable cost                49,500 Budgeted unit variable cost $                7.50 Variable cost for 5400 units=5400*7.5=                40,500 Budgeted fixed cost                  81,000 As fixed cost will be the same in flexible budget, the   fixed and variable cost for Flexible budget of 5400 units; Fixed Cost                81,000 Variable cost                40,500 so the fourth option is correct

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

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