Flexible Budget: 

Required:

Given the data shown in the graph, what are the following:

a. The budgeted fixed cost per period?

b. The budgeted variable cost per unit?

c. The value of c (that is, the flexible budget for an activity level of 2 million units)?

d. If the actual activity had been 4 million units, what would be the flexible budget cost amount?

Transcribed Image Text:

Costs $3,000,000 C Actual costs $2,000,000 $1,000,000 Master budget Flexible budget line 2,000,000 units 2,500,000 units Actual activity Planned activity Activity per period