If a company's flexible budget formula is $9.50 per unit plus $67,900, what would be the total budget for evaluating operating performance if 23,850 units were sold and 28,460 units were produced?
A) $294,475
B) $338,270
C) $309,335
D) $226,575

Question

Quizplus · Accepted Answer

The flexible budget is calculated based on the number of units sold, not produced. Therefore, the total budget is $9.50 per unit times 23,850 units sold plus $67,900, which equals $338,270.

If a Company's Flexible Budget Formula Is $9