XYZ Corp. produced 26,000 units of its only product. Machine hours per unit are 2.8. The budget planned for 23,000 units. What are the budgeted machine hours and the flexible-budget machine hours, respectively?
A) 64,400 machine hours; 72,800 machine hours
B) 72,800 machine hours; 64,400 machine hours
C) 68,000 machine hours; 75,000 machine hours
D) 75,000 machine hours; 68,000 machine hours

Question

Quizplus · Accepted Answer

Budgeted machine hours are calculated based on the budgeted production volume, which is 23,000 units at 2.8 hours per unit, resulting in 64,400 machine hours (23,000 units * 2.8 hours/unit). Flexible-budget machine hours are based on the actual production volume, which is 26,000 units at 2.8 hours per unit, resulting in 72,800 machine hours (26,000 units * 2.8 hours/unit).

XYZ Corp Produced 26,000 Units of Its Only Product