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A framing company produces picture frames in an automated process. The required direct materials costs $0.30 per frame. Fixed manufacturing overhead costs are budgeted at $28,250 per month and are allocated based on frames produced. The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month. What is the flexible-budget amount for operating income for 45,000 and 25,000 frames, respectively? O $2,500; <$14,500> O $6,750; <$10,250> O $36,000; $30,000 O $38,250, $21,250

A framing company produces picture frames in an automated process. The required direct materials costs $0.30 per frame. Fixed manufacturing overhead costs are budgeted at $28,250 per month and are allocated based on frames produced. The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month. What is the flexible-budget amount for operating income for 45,000 and 25,000 frames, respectively? O $2,500; <$14,500> O $6,750; <$10,250> O $36,000; $30,000 O $38,250, $21,250

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 3 A framing company produces picture frames in an automated process. The required direct materials costs $0.30 per frame. Fixed manufacturing overhead costs are budgeted at $28,250 per month and are allocated based on frames produced. The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month. What is the flexible-budget amount for operating income for 45,000 and 25,000 frames, respectively? O $2,500; <$14,500> O $6,750; <$10,250> $36,000; $30,000 O $38,250, $21,250
Transcribed Image Text:QUESTION 3 A framing company produces picture frames in an automated process. The required direct materials costs $0.30 per frame. Fixed manufacturing overhead costs are budgeted at $28,250 per month and are allocated based on frames produced. The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month. What is the flexible-budget amount for operating income for 45,000 and 25,000 frames, respectively? O $2,500; <$14,500> O $6,750; <$10,250> $36,000; $30,000 O $38,250, $21,250
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