Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January:
The net operating income in the flexible budget for January would be closest to:
A) $32,823
B) $40,902
C) $32,670
D) $40,784

Question

Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:  Actual results for January:
 The net operating income in the flexible budget for January would be closest to:
A) $32,823 
B) $40,902 
C) $32,670 
D) $40,784

Quizplus · Accepted Answer

The Answer of Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:  Actual results for January:
 The net operating income in the flexible budget for January would be closest to:
A) $32,823 
B) $40,902 
C) $32,670 
D) $40,784

Kekiwi Corporation Manufactures and Sells a Single Product