If Acme Manufacturing Company uses flexible budgeting and actually sells 200,000 units during the period, these amounts will be included in its flexible budget performance report:
Variable costs = $1,000,000
Fixed costs = $240,000
<h3>What is a flexible budget?</h3>
A flexible budget adjusts the budget according to the activity or volume levels of the company.
For instance, if the total variable costs is $800,000 with expected sales of 160,000 but the actual sales equal 200,000, the flexible budget will be adjusted to $1,000,000 ($800,000/160,000 x 200,000).
<h3>Data and Calculations:</h3>
Expected sales = 160,000 units
Fixed Budget Figures:
Total variable costs = $800,000
Total fixed costs = $240,000
Flexible Budget Figures:
Total variable costs = $1,000,000 ($800,000/160,000 x 200,000)
Total fixed costs = $240,000
Thus, the flexible budget will still maintain the total fixed costs since they do not vary according to the volume level, within the relevant range.
Learn more about flexible budgets at brainly.com/question/14015382
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