A Factory Produces 50,000 Units for the Month of June,although

question 3

Multiple Choice

A factory produces 50,000 units for the month of June,although its budgeted output was 40,000 units.In this case:

• A)A comparison of budgeted results and actual results will be misleading unless the company uses a flexible budget.
• B)Actual fixed costs per unit may be expected to exceed budgeted levels.
• C)Actual cost per unit will be higher than standard cost per unit.
• D)Both total production costs and unit production costs should be approximately 25% above budgeted levels.

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