Question
Rays cost accountant prepared the following static budget based on expected activity of 2,360 units for the current accounting period: Sales Revenue $ 37,760 Variable
Rays cost accountant prepared the following static budget based on expected activity of 2,360 units for the current accounting period:
Sales Revenue $ 37,760
Variable Costs (14,160)
Contribution Margin 23,600
Fixed Costs (9,440)
Net Income $ 14,160
If Ray actually produced 1,860 units, the flexible budget would show variable costs of
A. $29500
B. $14160
C. $28320
D. $11160
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Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
471467855, 978-0471467854
