The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.

The flexible budget will report ________ for variable costs.
A) $101,933
B) $250,909
C) $45,000
D) $184,000

Question

The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.

The flexible budget will report ________ for variable costs.

The flexible budget will report ________ for variable costs.
A) $101,933 
B) $250,909 
C) $45,000 
D) $184,000

Quizplus · Accepted Answer

15,000 units × $184,000 / 11,000 = $250,909

The Actual Information Pertains to the Third Quarter