Use the Below Information to Answer the Following Questions:
Bekits

question 46

Multiple Choice

Use the below information to answer the following questions:
Bekits Corporation manufactured 25,000 grooming kits for horses during March. The following fixed overhead data relates to March:
$\begin{array}{lrr}&\text { Actual }&\text { Static Budget }\\\text { Production } & 37,500 \text { units } & 36,000 \text { units } \\\text { Machine-hours } & 6,100 \text { hours } & 5,940 \text { hours } \\\text { Fixed overhead costs for March } & \$ 133,000 & \$ 124,740\end{array}$
-What is the flexible-budget amount?

• A) $134,375.50
• B) $124,740.00
• C) $129,937.50
• D) $133,000.00

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.

Cost of Goods Sold

The historical cost of products sold as reported in the income statement.