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Natasha2012 [34]
2 years ago
5

Beech Manufacturing makes one product. Each unit of product requires 1.5 machine hours. Utility costs are budgeted at $0.55 per

machine hour. During July, the company budgeted 1,200 units and actually produced 1,000 units. The amount of utilities cost for July that appears on the flexible budget is
Business
1 answer:
katrin [286]2 years ago
7 0

The amount of utilities cost for July that appears on the flexible budget is12,500*$0.33 = $4.

<h3>Flexible budget </h3>

A flexible budget is one based on different volumes of sales. A flexible budget flexes the static budget for each anticipated level of production. This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales.

<h3>How do you calculate flexible budget?</h3>

To do this, multiply the total production output by the variable cost of each unit produced. For example, if the total production output is 1,000 products and the variable cost for each unit is $25, the total variable cost is $25,000. You can also calculate average variable costs that are not related to production.

Learn more about flexible budget here :

brainly.com/question/14202862

#SPJ4

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