Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed costs and $246,000 of variable costs. If the company actually produces 20,000 units, what are the flexible budget amounts of fixed and variable costs?

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Business

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24 June, 08:46

Based on predicted production of 24,000 units, a company anticipates $300,000 of fixed costs and $246,000 of variable costs. If the company actually produces 20,000 units, what are the flexible budget amounts of fixed and variable costs?

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Monique Strong · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Based on the predicted production of 24,000 units, a company anticipates $300,000 of fixed costs and $246,000 of variable costs. The company produces 20,000 units.

There is no reason or information to determine any change in fixed costs.

Fixed costs = 300,000

Variable costs = (246,000/24,000) * 20,000 = $205,000