Based on predicted production of 25,000 units, a company anticipates 12,500 of fixed costs and $41,250 of variable costs. The flexible budget amounts of fixed and variable costs for 19,000 units are:
rev: 12_10_2013_QC_42361
| $9,500 fixed and $31,350 variable. | |
| $12,500 fixed and $41,250 variable. | |
| $9,500 fixed and $41,250variable. | |
| $31,150 fixed and $9,500 variable. | |
| $12,500 fixed and $31,350 variable. |
Best answer
Fixed cost will be same at any units produced so it will be
$12,500Variable cost = ($41,250/25,000)*19,000 =$31,350
Answer :$12,500 fixed and $31,350 variable.
