A company's flexible budget for 1000 units of production is:

The flexible budget cost formula is:

Question

A company's flexible budget for 1000 units of production is:

The flexible budget cost formula is:

Quizplus · Accepted Answer

To find the flexible budget cost formula, we need to divide the total flexible budget cost by the number of units produced. From the table, we can see that the flexible budget cost for 1000 units is £61,000. Therefore, the cost per unit is £61,000 / 1000 units = £61. The formula for the cost includes fixed costs and variable costs, so we need to add the fixed costs of £4,900 to the variable cost per unit of £56.10. Thus, the flexible budget cost formula is £56.10 + £4,900 = £5,956.10 for any number of units produced. Therefore, choice C is correct.

A Company's Flexible Budget for 1000 Units of Production Is