The following budget for the 60,000-unit product level was prepared for the Production Department for September:
During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. The cost-volume relationship used to prepare the flexible budget for this department includes:

Question

The following budget for the 60,000-unit product level was prepared for the Production Department for September:
  During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. The cost-volume relationship used to prepare the flexible budget for this department includes:

Quizplus · Accepted Answer

The flexible budget reflects variable costs, which change with the level of production. The given option D indicates variable costs of $2.15 per unit, which aligns with the concept of a flexible budget that adjusts for changes in activity levels.

The Following Budget for the 60,000-Unit Product Level Was Prepared