Baltimore Booms is a start-up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed costs of $12,000 per month. Baltimore Blooms's static budget predicted production and sales of 220 amplifiers in August, but the company actually produced and sold 232 amplifiers, at a total cost of $68,000. Baltimore Blooms' total flexible budget cost for the actual number of amplifiers produced and sold is: A. $58,000 B. $60,000 C. $67,000 D. $70,000
Baltimore Booms is a start-up company that makes electronic sound amplifiers. The company has budgeted variable costs of $250 for each amplifier and fixed costs of $12,000 per month. Baltimore Blooms's static budget predicted production and sales of 220 amplifiers in August, but the company actually produced and sold 232 amplifiers, at a total cost of $68,000. Baltimore Blooms' total flexible budget cost for the actual number of amplifiers produced and sold is: A. $58,000 B. $60,000 C. $67,000 D. $70,000
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...
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Transcribed Image Text:Baltimore Booms is a start-up company that makes electronic sound amplifiers.
The company has budgeted variable costs of $250 for each amplifier and fixed
costs of $12,000 per month. Baltimore Blooms's static budget predicted
production and sales of 220 amplifiers in August, but the company actually
produced and sold 232 amplifiers, at a total cost of $68,000.
Baltimore Blooms' total flexible budget cost for the actual number of amplifiers
produced and sold is:
A. $58,000
B. $60,000
C. $67,000
D. $70,000
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