Based
on predicted production of 10,200 units, a company anticipates $107,000
of fixed costs and $142,800 of variable costs. The flexible budget
amounts of fixed and variable costs for 8,400 units are:
| $88,118 fixed and $142,800 variable. | |
| $107,000 fixed and $142,800 variable. | |
| $117,600 fixed and $107,000 variable. | |
| $88,118 fixed and $117,600 variable. | |
 | $107,000 fixed and $117,600 variable. |
| Fixed costs remain at $107,000 |
| Variable costs = ($142,800/10,200) x 8,400 units = $117,600 |
