Which of the following is not an accurate amount to be included in a flexible budget prepared for the 70,000-unit level of production?
A) Total overhead cost, $108,000.
B) Total manufacturing costs, $216,500.
C) Direct materials, $49,000.
D) Direct labor, $59,500.

Question

Quizplus · Accepted Answer

The amount of total manufacturing costs cannot be accurately determined just from the level of production alone, as it would depend on other factors such as the cost behavior of variable and fixed costs. The other amounts listed (total overhead cost, direct materials, and direct labor) can be more accurately estimated and included in a flexible budget.

Which of the Following Is Not an Accurate Amount to Be