The actual information pertains to the month of June. As part of the budgeting process, Petrified Products Company developed the following master budget for June. The manager, Pete, is in the process of preparing the flexible budget and understanding the results.

-The flexible budget will report $________ for the flexible (variable)costs.
A)$512,000
B)$600,000
C)$480,000
D)$640,000

Question

The actual information pertains to the month of June. As part of the budgeting process, Petrified Products Company developed the following master budget for June. The manager, Pete, is in the process of preparing the flexible budget and understanding the results.
 
-The flexible budget will report $________ for the flexible (variable)costs.
A)$512,000 
B)$600,000 
C)$480,000 
D)$640,000

Quizplus · Accepted Answer

C)$600,000 / 25,000 units = $24 standard cost per unit × 20,000 actual units = $480,000

The Actual Information Pertains to the Month of June