Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.
-Using the information provided for Dry Cat Food division,the flexible budget is based on how many units produced?
A)0 units
B)30 units
C)70 units
D)100 units

Question

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.  
-Using the information provided for Dry Cat Food division,the flexible budget is based on how many units produced?
A)0 units 
B)30 units 
C)70 units 
D)100 units

Quizplus · Accepted Answer

The flexible budget is based on the actual number of units produced, which in this case is 70 units (as shown in the "actual" column of the report). Therefore, the answer is C.

Use the Following Performance Report for a Cost Center of the Dry