Question
Baltimore Booms is a start up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed
Baltimore Booms is a start up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed costs of $12,000 per month. Baltimore Booms' static budget predicted production and sales of 220 amplifiers in August, but the company actually produced and sold 232 amplifiers, at a total cost of $68,000. Baltimore Booms' total flexible budget cost for the actual number of amplifiers produced and sold is?
a) 58,000 b) 60,000 c) 67,000 d) 70,000
Baltimore Booms' sales volume variance for total cost is? (also if unfavorable or favorable)
a) 3,000 U b) 3,000 F c) 2,000 U d) 2,000 F
Baltimore Booms' flexible budget variance for total cost is (also note if unfavorable or favorable)
a) 3,000 U b) 3,000 F c) 2,000 U d) 2,000F
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