Scott Manufacturing Co

Scott Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $25,000. At 12,000 units of production, a flexible budget would show:

A) variable costs of $52,800 and $30,000 of fixed costs
B) variable costs of $44,000 and $25,000 of fixed costs
C) variable costs of $52,800 and $25,000 of fixed costs
D) variable and fixed costs totaling $69,000

Correct Answer:

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