Question

QS 23-2 Flexible budget LO P1

Based on predicted production of 24,700 units, a company anticipates $220,000 of fixed costs and $271,700 of variable costs. If the company actually produces 20,000 units, what are the flexible budget amounts of fixed and variable costs?

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	24,700 units	20,000 units
Variable cost
Fixed costs
Total budgeted costs			$0	$0

Answer 1

	Flexible Budget		Flexible Budget
	Variable Amount per Unit	Total Fixed Cost	24700 Unit	20000 Unit
Variable Cost	11.00		2,71,700.00	2,20,000.00
Fxed Cost		2,20,000.00	2,20,000.00	2,20,000.00
Total Budgeted Cost			4,91,700.00	4,40,000.00