-Refer to Figure 11-1. What is the flexible budget amount for the first quarter?
A) $288,000
B) $311,000
C) $312,000
D) $261,000
E) Cannot be determined.

Question

-Refer to Figure 11-1. What is the flexible budget amount for the first quarter?
A) $288,000 
B) $311,000 
C) $312,000 
D) $261,000 
E) Cannot be determined.

Quizplus · Accepted Answer

The flexible budget amount for the first quarter is $312,000. This is calculated by multiplying the budgeted sales for the first quarter by the variable cost per unit and adding the fixed costs. The budgeted sales for the first quarter are 12,000 units, the variable cost per unit is $20, and the fixed costs are $60,000. Therefore, the flexible budget amount for the first quarter is 12,000 units * $20 per unit + $60,000 = $312,000.