Refer to Lifter Company. Which of the following is a flexible budget formula for the moving materials activity?
A) $180,000 + $0.50 × moves
B) $405,000 + $0.50 × moves
C) $450,000 + $0.50 × moves
D) $450,000 + $2.00 × moves

Question

Quizplus · Accepted Answer

The flexible budget formula for moving materials activity is the fixed cost plus variable cost per unit. The fixed cost for this activity is $450,000, and the variable cost per unit is $0.50. Therefore, the correct formula is $450,000 + $0.50 × moves, which is option C.