Question

Westside Manufacturing Co.'s budget at 6,000 units of production includes $36,000 for direct labor and $3,000 for electric power. Total fixed costs are $33,000. At 7,000 units of production, a flexible budget would show: Group of answer choices variable and fixed costs totaling $45,375 variable costs of $39,000 and $33,875 of fixed costs variable costs of $45,500 and $33,000 of fixed costs variable costs of $44,000 and $33,000 of fixed costs

Answer 1

Answer:

variable costs of $45,500 and $33,000 of fixed costs

Explanation:

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

The fixed cost is $33,000

And, the variable cost is

= 39,000 ÷ 6,000 units × 7,000 units

= $45,500

Therefore variable costs of $45,500 and $33,000 of fixed costs

Hence, the same is to be considered and relevant