The medical supplies in the flexible budget for February would be closest to:

A) $17,512
B) $17,204
C) $18,087
D) $18,240

Question

The medical supplies in the flexible budget for February would be closest to:A) $17,512B) $17,204C) $18,087D) $18,240

Blythe Baker · Accepted Answer

Final Answer : C, Explanation :  Cost = Fixed cost + (Variable cost per unit × q)= $900 + ($5.10 × 3,370)= $18,087Reference: CH09-Ref11Neubert Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During December, the company budgeted for 5,300 units, but its actual level of activity was 5,340 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:   Actual results for December:

The medical supplies in the flexible budget for February would be closest to:

A) $17,512
B) $17,204
C) $18,087
D) $18,240

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