The following budget for the 80,000-unit normal production level was prepared by the Montgomery Corporation for September:
During September, the Production Department actually produced 90,000 units at a total manufacturing cost of $165,000.
-Refer to the above data. The cost-volume relationship used to prepare the flexible budget for this department includes:
A) Manufacturing overhead cost of $1.00 (rounded) per unit.
B) Fixed cost of $0.65 (rounded) per unit.
C) Total cost of $1.90 (rounded) per unit.
D) Variable costs of $1.32 (rounded) per unit.

Question

The following budget for the 80,000-unit normal production level was prepared by the Montgomery Corporation for September: 
  During September, the Production Department actually produced 90,000 units at a total manufacturing cost of $165,000.
-Refer to the above data. The cost-volume relationship used to prepare 	the flexible budget for this department includes:
A) Manufacturing overhead cost of $1.00 (rounded) per unit. 
B) Fixed cost of $0.65 (rounded) per unit. 
C) Total cost of $1.90 (rounded) per unit. 
D) Variable costs of $1.32 (rounded) per unit.

Quizplus · Accepted Answer

The Answer is D

The Following Budget for the 80,000-Unit Normal Production Level Was