Amadon Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,900 units, but its actual level of activity was 7,920 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The selling and administrative expenses in the planning budget for July would be closest to:
A)$23,960
B)$24,690
C)$24,628
D)$23,950

Question

Amadon Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,900 units, but its actual level of activity was 7,920 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The selling and administrative expenses in the planning budget for July would be closest to:

-The selling and administrative expenses in the planning budget for July would be closest to:
A)$23,960 
B)$24,690 
C)$24,628 
D)$23,950

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $20,000 + $0.50 F1F1F1S1F1F1F10 7,900 = $23,950

Amadon Corporation Manufactures and Sells a Single Product