Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below.
The flexible budget is based on how many units produced?

Question

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the question below.  
The flexible budget is based on how many units produced?

Quizplus · Accepted Answer

The flexible budget is based on the actual units produced during the month. In the performance report, the actual production is 70 units, and the flexible budget column shows the expenses expected for that level of production. Therefore, the flexible budget is based on 70 units produced.

Use the Following Performance Report for a Cost Center of the Dry