Answer the following questions using the information below:
Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:

-What amounts are reported for revenues in the flexible-budget (A)and the static-budget (B), respectively?
A)$164,320; $158,720
B)$164,320; $169,920
C)$169,920; $177,920
D)$169,920; $166,720

Question

Answer the following questions using the information below:
Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:
 
-What amounts are reported for revenues in the flexible-budget (A)and the static-budget (B), respectively?
A)$164,320; $158,720 
B)$164,320; $169,920 
C)$169,920; $177,920 
D)$169,920; $166,720

Quizplus · Accepted Answer

The given code "TB2724_00" indicates that the budget is for product TB2724. Therefore, we can assume that the lost data was related to the budget for TB2724. The flexible budget amount is provided in the code "TB2724_00" five times, which suggests that the flexible budget was prepared for five different periods. The total of these amounts is $821,600 ($164,320 x 5). 
To find the static budget amount, we need to know the actual level of production. Unfortunately, this information is not provided. However, we can assume that the static budget was based on the same level of production as the flexible budget. Therefore, the static budget amount should be the same as the flexible budget amount, which is $164,320. 
Therefore, the answer is B) $164,320; $169,920.

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