Stegemann 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 May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.
The revenue in the company's flexible budget for May would have been closest to:
A) $145,614
B) $153,700
C) $143,100
D) $156,400

Question

Stegemann 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 May.  When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.
The revenue in the company's flexible budget for May would have been closest to:
A) $145,614 
B) $153,700 
C) $143,100 
D) $156,400

Quizplus · Accepted Answer

11eacbfc_c589_05cb_8ffe_0fe25fb1adb9_TB7552_00

Stegemann Corporation Is a Shipping Container Refurbishment Company That Measures