Dancause Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has provided the following data concerning the formulas to be used in its budgeting: The direct materials in the flexible budget for October would be closest to:
A)$67,320
B)$64,905
C)$64,651
D)$67,188

Question

Dancause Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has provided the following data concerning the formulas to be used in its budgeting:  The direct materials in the flexible budget for October would be closest to:
A)$67,320 
B)$64,905 
C)$64,651 
D)$67,188

Quizplus · Accepted Answer

The Answer of Dancause Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has provided the following data concerning the formulas to be used in its budgeting:  The direct materials in the flexible budget for October would be closest to:
A)$67,320 
B)$64,905 
C)$64,651 
D)$67,188

Dancause Corporation Manufactures and Sells a Single Product