Tabeling Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-The net operating income in the planning budget for August would be closest to:
A)$21,300
B)$21,908
C)$11,005
D)$10,871

Question

Tabeling Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-The net operating income in the planning budget for August would be closest to:

Data used in budgeting:

Actual results for August:

-The net operating income in the planning budget for August would be closest to:
A)$21,300 
B)$21,908 
C)$11,005 
D)$10,871

Quizplus · Accepted Answer

The net operating income in the planning budget is calculated based on projected revenues and expenses. The closest value to the calculated net operating income for August is $21,300.

Tabeling Corporation Manufactures and Sells a Single Product