Dukeman Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 7,100 units, but its actual level of activity was 7,060 units. The company has provided the following data concerning the formulas to be used in its budgeting:
-The selling and administrative expenses in the planning budget for February would be closest to:
A)$28,656
B)$28,818
C)$28,436
D)$28,460

Question

Dukeman Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 7,100 units, but its actual level of activity was 7,060 units. The company has provided the following data concerning the formulas to be used in its budgeting: 
-The selling and administrative expenses in the planning budget for February would be closest to:
A)$28,656 
B)$28,818 
C)$28,436 
D)$28,460

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $24,200 + $0.60 F1F1F1S1F1F1F10 7,100 = $28,460

Dukeman Corporation Manufactures and Sells a Single Product