Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit. For the month of March, the company planned for activity of 5,700 units, but the actual level of activity was 5,660 units. The actual selling and administrative expense for the month was $522,860.
-The selling and administrative expense in the flexible budget for March would be closest to:
A) $547,200
B) $522,860
C) $543,360
D) $543,440

Question

Quizplus · Accepted Answer

The flexible budget for selling and administrative expenses is calculated as $11,400 + ($94 * 5,660 units) = $543,440.

Pollica Corporation's Cost Formula for Its Selling and Administrative Expense