If a Company's Flexible Budget Formula Is $11

question 66

Multiple Choice

If a company's flexible budget formula is $11.25 per unit plus $72,100,what would be the total budget for evaluating operating performance if 28,650 units were sold and 38,500 units were produced?

• A)$433,125
• B)$505,225
• C)$811,125
• D)$72,100

---

Definitions:

Defects

Imperfections, faults, or flaws in a product or process that deviate from the desired specifications or standards.

C-chart

A control chart used for monitoring the number of defects per unit in manufacturing or production processes.

Control Limits

Statistical boundaries set within control charts in process control to identify whether a process is in a state of control.

Average Diameters

The mean value of diameters measured across different points or objects, providing a single representative dimension.