Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The direct materials in the flexible budget for October would be closest to:
A)$95,095
B)$97,835
C)$95,810
D)$96,380

Question

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

Actual results for October:

-The direct materials in the flexible budget for October would be closest to:

Data used in budgeting:
 Actual results for October: 
-The direct materials in the flexible budget for October would be closest to:
A)$95,095 
B)$97,835 
C)$95,810 
D)$96,380

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $0 + $14.30 F1F1F1S1F1F1F10 6,650 = $95,095

Diskind Corporation Manufactures and Sells a Single Product