What is the budgeted fixed operating expense for 20X4? (Use the following data t

Question

What is the budgeted fixed operating expense for 20X4? (Use the following data to answer this question) Balance Sheet ASSETS Cash Account Receivable 12/31/20X3 100,000 250,000 250,000 100,000 Underbillings Other Current Assets Total Current Asset 700,000 Equipment (Gross Accumulated Depreciation(100,000 Equipment (Net) Total Assets EQUITIES Account Payable Overbillings Other Current Liability Total Current Liability Long Term Debt Total Liability Net Worth Total Equities 200,000 100,000 800,000 300,000 200,000 150,000 650,000 50,000 700,000 100,000 800,000 Income Statements (12/31/20x3) 1,600,000 Earnings Cost of Construction Labor Material Subcontracts Equipment Job Overhead 480,000 480,000 160,000 320,000 32,000 Total Direct Cost Gross Profit Variable Operating Expense Fixed Operating Expense Net Profit 1472,000 128,000 48,000 75.000 5,000

Explanation / Answer

The Budgeted Fixed Operatig Expenses for 2014 will be :

Fixed Operatig Expenses for 2013 = $ 75000

It is increased by $ 20000 in 2014.

Therefore Fixed Overead Will be = 75000+20000 = $ 95000

The Correct Answer is C) 95000

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