10. Based on predicted production of 24,000 units, a company anticipates $444,00

Question

10.

Based on predicted production of 24,000 units, a company anticipates $444,000 of fixed costs and $390,000 of variable costs. The flexible budget amounts of fixed and variable costs for 22,000 units are (Do not round intermediate calculations):

$407,000 fixed and $357,500 variable.

$444,000 fixed and $390,000 variable.

$407,000 fixed and $390,000 variable.

$357,500 fixed and $444,000 variable.

$444,000 fixed and $357,500 variable

Based on predicted production of 24,000 units, a company anticipates $444,000 of fixed costs and $390,000 of variable costs. The flexible budget amounts of fixed and variable costs for 22,000 units are (Do not round intermediate calculations):

Explanation / Answer

Variable cost per unit 390000/24000 16.25 per unit Variable cost for 22000 units 22000*16.25 $357,500 Fixed Cost will be $ 444000 The correct option is D. $357,500 fixed and $444,000 variable.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

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