Friou Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 6,300 units, but its actual level of activity was 6,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:
Actual results for July:
-The net operating income in the flexible budget for July would be closest to:
A)$19,050
B)$28,279
C)$18,475
D)$27,832

Question

Friou Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 6,300 units, but its actual level of activity was 6,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The net operating income in the flexible budget for July would be closest to:

Data used in budgeting:
 Actual results for July: 
-The net operating income in the flexible budget for July would be closest to:
A)$19,050 
B)$28,279 
C)$18,475 
D)$27,832

Quizplus · Accepted Answer

The Answer of Friou Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 6,300 units, but its actual level of activity was 6,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:
 Actual results for July: 
-The net operating income in the flexible budget for July would be closest to:
A)$19,050 
B)$28,279 
C)$18,475 
D)$27,832

Friou Corporation Manufactures and Sells a Single Product