Cameron Manufacturing Co

Cameron Manufacturing Co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power. Total fixed costs are $20,000. At 8,000 units of production, a flexible budget would show:

A) variable costs of $64,000 and $25,000 of fixed costs
B) variable costs of $64,000 and $20,000 of fixed costs
C) variable costs of $72,000 and $20,000 of fixed costs
D) variable and fixed costs totaling $104,000

Correct Answer:

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