An organization planned to use $82 of material per unit of output,but it actually used $80 per unit.During this period,the company planned to make 1,200 units,but actually produced only 1,000 units.The flexible budget amount for materials is:
A)$80,000.
B)$82,000.
C)$96,000.
D)$98,400.
1,000 units of output x $82/unit standard cost = $82,000

Question

Quizplus · Accepted Answer

The flexible budget for materials is calculated using the actual output level and the standard cost per unit. Therefore, 1,000 units x $82/unit = $82,000.

An Organization Planned to Use $82 of Material Per Unit