Question

qs 21-2 (algo) flexible budget cost calculations lo p1

based on predicted production of 24,800 units, a company budgets $340,000 of fixed costs and $446,400 of variable costs. if the company actually produces 19,600 units, what are the flexible budget amounts of fixed and variable costs?

flexible budget
item | variable amount per unit | total fixed cost | 19,600 units

Explanation:

Calculate variable cost per unit

$$ \text{Variable Cost per Unit} = \frac{\$446,400}{24,800\text{ units}} = \$18.00\text{ per unit} $$

Determine flexible budget costs at actual production level

$$
LATEXBLOCK0
$$

Summarize flexible budget table values

$$
LATEXBLOCK1
$$

Answer:

Item	Variable Amount per Unit	Total Fixed Cost	19,600 units
Fixed costs		\$340,000	\$340,000