A company uses "Standard Costing".If the standard variable cost of making one unit is £0.32 and the budgeted production is 10,000 units but company produced 12,000 units,the expected variable cost would be:
A) £3,200
B) £0.32
C) £3,840
D) £640

Question

Quizplus · Accepted Answer

The variable cost is directly dependent upon production. Although the budgeted cost was £3,200 for 10,000 units, the actual production was 12,000 units and therefore the expected variable cost would be 12,000 x 0.32 = £3,840.

A Company Uses "Standard Costing