Given a production volume of 3,000 units and a cost of $500 per unit, what is the total flexible budget amount for variable costs?

Multiple choice question for Flexible Budget and Management Control. Select an option, then review the explanation below.

Explanation

To calculate the flexible budget for variable costs, multiply the number of units (3,000) by the cost per unit ($500). This results in $1,500,000, which corresponds to option A.

Practice related questions from the same subject.

1.Given that the sales budget variance for operating income is $58,000 and the static budget figure is $15,000, what is the value of the flexible budget?
2.Given a flexible budget value of $82,000 and an actual outcome of $45,000, what is the variance between the flexible budget and the actual result?
3.Given a flexible budget of $27,000 and a flexible budget variance of $12,000, what is the actual amount recorded?
4.Given a sales budget variance of $47,000 and a flexible budget figure of $77,000, what is the value of the static budget?
5.Given a sales budget variance of $57,000 and a flexible budget total of $97,000, what is the value of the static budget?

Given a production volume of 3,000 units and a cost of $500 per unit, what is the total flexible budget amount for variable costs?

Explanation

More Flexible Budget and Management Control MCQs