Faulks Corporation Is a Shipping Container Refurbishment Company That Measures

question 352

Multiple Choice

Faulks Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of August,it assumed that 23 containers would have been refurbished.However,26 containers were actually refurbished during August.
The amount shown for total expenses in the planning budget for August would have been closest to:

• A) $111,904
• B) $126,500
• C) $122,400
• D) $128,100

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