Davis Corporation has developed the following flexible budget formula for monthly overhead: For output of less that 200,000 units:

For output of less than 200,000 units: $36,600 + $.80(units)

For output of 200,000 units or more: $43,000 + $.80(units)

How much overhead should Davis expect if the firm plans to produce 200,000 units? A)$52,600 B)$59,000 C)$196,600 D)$203,000

Question

Davis Corporation has developed the following flexible budget formula for monthly overhead: For output of less that 200,000 units:

For output of less than 200,000 units:	$36,600 + $.80(units)
For output of 200,000 units or more:	$43,000 + $.80(units)

How much overhead should Davis expect if the firm plans to produce 200,000 units? A)$52,600 B)$59,000 C)$196,600 D)$203,000

Quizplus · Accepted Answer

The Answer of Davis Corporation has developed the following flexible budget formula for monthly overhead: For output of less that 200,000 units:

For output of less than 200,000 units:	$36,600 + $.80(units)
For output of 200,000 units or more:	$43,000 + $.80(units)

How much overhead should Davis expect if the firm plans to produce 200,000 units? A)$52,600 B)$59,000 C)$196,600 D)$203,000

Davis Corporation Has Developed the Following Flexible Budget Formula for Monthly