Letts Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The cleaning equipment and supplies in the flexible budget for September would be closest to:
A)$1,947
B)$3,288
C)$3,340
D)$4,988

Question

Letts Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The cleaning equipment and supplies in the flexible budget for September would be closest to:

-The cleaning equipment and supplies in the flexible budget for September would be closest to:
A)$1,947 
B)$3,288 
C)$3,340 
D)$4,988

Quizplus · Accepted Answer

The flexible budget adjusts for actual activity levels, and $3,288 is the closest estimate for cleaning equipment and supplies based on the given options.

Letts Corporation Manufactures and Sells a Single Product