Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activity was 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
-The direct materials in the flexible budget for August would be closest to:
A) $71,020
B) $71,338
C) $72,913
D) $72,264

Question

Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activity was 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: 
-The direct materials in the flexible budget for August would be closest to:
A) $71,020 
B) $71,338 
C) $72,913 
D) $72,264

Quizplus · Accepted Answer

The Answer of Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activity was 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: 
-The direct materials in the flexible budget for August would be closest to:
A) $71,020 
B) $71,338 
C) $72,913 
D) $72,264

Nasson Corporation Manufactures and Sells a Single Product