Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Actual results for March:

-The selling and administrative expenses in the planning budget for March would be closest to:
A) $31,330
B) $31,350
C) $31,950
D) $32,113

Question

Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
  Actual results for March:
 
-The selling and administrative expenses in the planning budget for March would be closest to:
A) $31,330 
B) $31,350 
C) $31,950 
D) $32,113

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $27,400 + ($0.50 × 7,900) = $31,350

Harold Corporation Manufactures and Sells a Single Product