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VLD [36.1K]
3 years ago
14

With a planned volume of 15,000 units, the master budget includes variable costs of $450,000 and fixed costs of $350,000. If the

actual volume is 12,000 units, the total costs under flexible budget should be:__________a. $490,000.b. $560,000.c. $650,000.d. $710,000.
Business
1 answer:
siniylev [52]3 years ago
4 0

Answer:

Total cost= $710,000

Explanation:

Giving the following information:

15,00 units:

Fixed costs= $350,000

Total variable cost= $450,000

<u>First, we need to calculate the unitary variable cost:</u>

Unitary variable cost= 450,000 / 15,000

Unitary variable cost= $30

<u>Now, the total cost for 12,000 units:</u>

Total cost= 350,000 + 30*12,000

Total cost= $710,000

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