Stegemann Corporation Is a Shipping Container Refurbishment Company That Measures

question 201

Multiple Choice

Stegemann 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 and the actual results of operations for May.
When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.
-The revenue in the company's flexible budget for May would have been closest to:

• A) $145,614
• B) $153,700
• C) $143,100
• D) $156,400

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Definitions:

Motor Division

A business unit within a company that focuses on the production, development, and sales of motor vehicles or engines.

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company.

Pump Division

A business segment within a company focused on the production, sales, and service of pump-related products.

Pool Products Division

A specific branch of a company focused on the development, production, and marketing of pool-related products.