After selling 4,300 units during the period,Dole Corp.prepared a flexible budget that included $22,962 for direct materials,$36,120 for direct labor,$19,350 for variable overhead,and $46,440 for fixed overhead.Dole originally planned its master budget based on sales of 4,000 units.What would total costs have been on the master budget?
A)$111,070
B)$119,400
C)$124,872
D)$116,160

Question

Quizplus · Accepted Answer

The master budget is based on 4,000 units. The variable costs (direct materials, direct labor, and variable overhead) need to be adjusted for 4,000 units. Fixed overhead remains the same. Total costs = (22,962/4,300)*4,000 + (36,120/4,300)*4,000 + (19,350/4,300)*4,000 + 46,440 = $119,400.

After Selling 4,300 Units During the Period,Dole Corp