Benjamin Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March.
-The amount shown for total expenses in the planning budget for March would have been closest to:
A) $126,700
B) $143,226
C) $128,600
D) $133,700

Question

Benjamin Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
  When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March.
-The amount shown for total expenses in the planning budget for March would have been closest to:
A) $126,700 
B) $143,226 
C) $128,600 
D) $133,700

Quizplus · Accepted Answer

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Benjamin Corporation Is a Shipping Container Refurbishment Company That Measures