The 2014 master budget for total costs was $293,250, with variable costs of $104,760, fixed costs of $181,700, and a production level of 10,800 units. The 2014 flexible budget for total costs was $304,980, calculated using actual production of 11,500 units, variable costs of $111,550 and fixed costs of $193,430.

1. The following information is for X Company for 2014:
1. What was the 2014 master (static) budget for total costs?
2. What was the 2014 flexible budget for total costs
?
Master Actual
Budget Results
Production 10,800 units 11,500 units
Total variable costs $104,760 $158,166
Total fixed costs $181,700 $177,237
Solution
Answer-1. 2014 master (static) budget for total costs-
Varriable cost per unit=$104760/10800=$9.70 per unit
Fixed cost =$181700/-
Total Varriable cost=9.70*11500=$111550
Total Cost=111550+181700=$293250/-
Answer-2 2014 flexible budget for total costs-
Total VC=$111550/-
FC per unit=181700/10800=$16.82per unit
Total FC=$16.82*11500=$193430/-

2. Total Cost=111550+193430=$304980/-