Bob and Sons\' static budget for 10,000 units of production includes $50,000 for

Question

Bob and Sons' static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show: (Points : 2)
A) the same cost structure in total
B) direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $18,000
C) total variable costs of $136,800
D) direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000

Explanation / Answer

D) direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000

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