Answer the following questions using the information below:
Brennen Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 2,000 units but actually made 2,400 units.
-The flexible-budget amount is:
A)$48,000
B)$50,000
C)$57,600
D)$60,000

Question

Quizplus · Accepted Answer

Flexible budget amount = (Actual quantity – Planned quantity) × Planned variable cost per unit + Planned total fixed cost
= (2,400 – 2,000) × $24 + $72,000
= 400 × $24 + $72,000
= $9,600 + $72,000
= $81,600
Therefore, the flexible-budget amount is $81,600, which corresponds to choice C.

Answer the Following Questions Using the Information Below