Davis Company produced 20,000 cases of beer.Machinery usage is 1.5 hours per case.Budget outputs are 22,000 cases.What are the required static budget machine hour inputs and flexible budget machine hour inputs, respectively?
A)30,000 Machine hours, 33,000 Machine hours
B)33,000 Machine hours, 30,000 Machine hours
C)39,000 Machine hours, 34,000 Machine hours
D)34,000 Machine hours, 39,000 Machine hours
E)39,000 Machine hours, 33,000 Machine hours

Question

Quizplus · Accepted Answer

The static budget is based on the budgeted output of 22,000 cases, requiring 33,000 machine hours (22,000 cases x 1.5 hours). The flexible budget is based on actual production of 20,000 cases, requiring 30,000 machine hours (20,000 cases x 1.5 hours).

Davis Company Produced 20,000 Cases of Beer