Based on predicted production of 36,000 units, a company anticipates $882,000 of fixed costs and $801,000 of variable costs

Accounting Nov 29, 2020

Based on predicted production of 36,000 units, a company anticipates $882,000 of fixed costs and $801,000 of variable costs. The flexible budget amounts of fixed and variable costs for 34,000 units are (Do not round Intermediate calculations): Multiple Choice $882,000 fixed and $801,000 variable $882,000 fixed and $756,500 variable 5833,000 fixed and $801,000 variable $756.500 fixed and $882.000 variable $333,000 fled and $756,500 variable.

Expert Solution

Variable= variable costs/predicted production units* Variable costs of units

= $801,000/36,000*34,000 = $756,500

Fixed cost = $882,000

$882,000 Fixed and $756,500 Variable

Therefore, the Correct answer is b) $882,000 Fixed and $756,500 Variable

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