Question
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):
| Rent (fixed) | $ 3,000 |
|---|---|
| Supplies (variable) | $ 5.20q |
| Utilities (mixed) | $ 150 + $ 0.75q |
The companys planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?
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Construction Industry IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131920, 978-1304131928
