Microgen Company Static Budget for 12,000 Units of Production Includes

question 4

Multiple Choice

Microgen Company static budget for 12,000 units of production includes $48,000 for direct materials, $36,000 for direct labor, utilities of $6,000, and supervisor salaries of $18,000.A flexible budget for 14,000 units of production would show:

• A) the same cost structure in total.
• B) direct materials of $56,000, direct labor of $42,000, utilities of $7,000, and supervisor salaries of $18,000.
• C) total variable costs of $126,800.
• D) direct materials of $50,000, direct labor of $37,500, utilities of $6,250, and supervisor salaries of $21,000.