1.
Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed costs
and $246,000 of variable costs. If the company actually produces 20,000 units, what are the
flexible budget amounts of fixed and variable costs? (Round cost per unit to 2 decimal places.)
Solution
Statement showing Fixed ad Variable cost 24000 Units 20000 Units Particulars Total Per Unit
Total Per Unit Variable costs                246,000.00
                         10.25
               205,000.00
                         10.25 Fixed Costs
               300,000.00
                         12.50
               300,000.00
                         15.00 Total Costs
               546,000.00
                         22.75
               505,000.00
                         25.25