Which of the following mathematical expressions is found in a typical flexible-budget formula for overhead?
A) Total activity units + budgeted fixed overhead cost per unit.
B) Budgeted variable overhead cost per unit + budgeted fixed overhead cost.
C) (Budgeted variable overhead cost per unit *total activity units) + budgeted fixed overhead costs.
D) (Budgeted fixed overhead cost per unit *total activity units) + (budgeted variable overhead cost per unit*total activity units).
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

A typical flexible-budget formula for overhead includes both variable and fixed components. The variable component is calculated as the budgeted variable overhead cost per unit times the total activity units, and then the budgeted fixed overhead costs are added to this amount.

Which of the Following Mathematical Expressions Is Found in a Typical