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) | $4.00q | ||
| Utilities (mixed) | $150 + $0.75q | ||
The companys planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much rent expense would be included in the flexible budget?
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
4th Canadian Edition
0470155353, 978-0470155356
