Jase Manufacturing Co.'s static budget at 7,800 units of production includes $39,000 for direct labor and $3,120 for electric power. Total fixed costs are $43,900. At 10,500 units of production, a flexible budget would show a. variable costs of $56,700 and $43,900 of fixed costs b. variable costs of $56,700 and $59,096 of fixed costs c. variable and fixed costs totaling $86,020 d. variable costs of $42,120 and $43,900

Question

Dominick

Business

22 May, 21:16

Jase Manufacturing Co.'s static budget at 7,800 units of production includes $39,000 for direct labor and $3,120 for electric power. Total fixed costs are $43,900. At 10,500 units of production, a flexible budget would show a. variable costs of $56,700 and $43,900 of fixed costs b. variable costs of $56,700 and $59,096 of fixed costs c. variable and fixed costs totaling $86,020 d. variable costs of $42,120 and $43,900

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Answers (1)

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Johnathan Dodson · Answer 1

Option A. Variable costs of $56,700 and $43,900 of fixed costs

Explanation:

Given:

Jase Manufacturing Co.'s static budget at 7,800 units of production includes;

Direct labor = $39,000

Electric power = $3,120

Total fixed costs = $43,900

Variable costs = [$ (39,000 + 3,120) : 7800] * 10,500 = $56,700

Fixed costs = $43,900