Question

Jase Manufacturing Co.'s static budget at 7,600 units of production includes $30,400 for direct labor and $3,040 for electric power. Total fixed costs are $39,200. At 10,500 units of production, a flexible budget would show a.variable costs of $46,200 and $39,200 of fixed costs b.variable costs of $46,200 and $54,158 of fixed costs c.variable and fixed costs totaling $72,640 d.variable costs of $33,440 and $39,200

Answer 1

Answer:

a.variable costs of $46,200 and $39,200 of fixed costs

Explanation:

Given that

Direct labor cost= $30,400

Electric power = $3,040

Fixed cost = $39,200

So, The computation of the variable cost and the fixed cost is shown below:

The variable cost is

= (Direct labor + electric power) ÷ production units × estimated production units

= ($30,400 + $3,040) ÷ 7,600 units × 10,500 units

= $46,200

And, the fixed cost is $39,200