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Hwa Hong Ltd prepared a flexible budget which revealed total production costs of $79,000 at an anticipated 10,000 unit activity level. Variable production costs were
Hwa Hong Ltd prepared a flexible budget which revealed total production costs of $79,000 at an anticipated 10,000 unit activity level. Variable production costs were (per unit) $1.50 for direct materials, $3.50 for direct labour, and $0.75 for variable factory overhead. How much are total anticipated production costs in Hwa Hong's flexible budget for an activity level of 10,800 units?
A) $21,500.
B) $83,600.
C) $79,000.
D) $62,100.
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