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Jase Manufacturing Co.'s static budget at 7,600 units of production includes $38,000 for direct labor and $2,280 for electric power. Total fixed costs are $44,400. At 10,800 units of production, a flexible budget would show a. variable and fixed costs totaling $84,680 b. variable costs of $57,240 and $44,400 of fixed costs c. variable costs of $40,280 and $44,400 d. variable costs of $57,240 and $63,095 of fixed costs

Respuesta :

Answer: (b.) variable costs of $57,240 and $44,400 of fixed costs

Explanation:

Given:

7,600 units of production

$38,000 for direct labor

$2,280 for electric power

Total fixed costs are $44,400

We'll compute Variable Cost using the following formula :

Variable cost = [tex][\frac{(Budget for direct labor + Budget for electric power)}{Units of production}] \times Increased units of production[/tex]

Variable cost = [tex][\frac{(38000 + 2280)}{7600}] \times 10800[/tex]

Variable cost = $57,240

Fixed cost = $44,440

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