Schoening Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for January. When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January.
The total expenses in the flexible budget for January would have been closest to:
A) $160,500
B) $160,200
C) $163,800
D) $168,947

Question

Schoening Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for January.  When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January.
The total expenses in the flexible budget for January would have been closest to:
A) $160,500 
B) $160,200 
C) $163,800 
D) $168,947

Quizplus · Accepted Answer

11eacbfc_c586_e2e1_8ffe_3b0f01dd5f5f_TB7552_00

Schoening Corporation Is a Shipping Container Refurbishment Company That Measures