Iota Inc. prepared its static budget for producing 20,000 units of one of its products for the next quarter using the following cost data: Static budget Costs Amounts Direct materials costs $60,000 Direct labor costs $80,000 Variable Manufacturing overhead costs $100,000 Fixed costs for the quarter $35,000 A flexible budget for 25,000 units of production would show: Group of answer choices A total variable cost of $300,000 and fixed costs of $43,750 The same proportion of fixed costs and variable costs A total variable cost of $300,000 and fixed costs of $35,000 Total variable costs of $240,000 and fixed costs of $35,000
Iota Inc. prepared its static budget for producing 20,000 units of one of its products for the next quarter using the following cost data: Static budget Costs Amounts Direct materials costs $60,000 Direct labor costs $80,000 Variable Manufacturing overhead costs $100,000 Fixed costs for the quarter $35,000 A flexible budget for 25,000 units of production would show: Group of answer choices A total variable cost of $300,000 and fixed costs of $43,750 The same proportion of fixed costs and variable costs A total variable cost of $300,000 and fixed costs of $35,000 Total variable costs of $240,000 and fixed costs of $35,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Iota Inc. prepared its static budget for producing 20,000 units of one of its products for the next quarter using the following cost data:
Static budget| Costs | Amounts |
|---|---|
| Direct materials costs | $60,000 |
| Direct labor costs | $80,000 |
| Variable |
$100,000 |
| Fixed costs for the quarter | $35,000 |
A flexible budget for 25,000 units of production would show:
Group of answer choices
A total variable cost of $300,000 and fixed costs of $43,750
The same proportion of fixed costs and variable costs
A total variable cost of $300,000 and fixed costs of $35,000
Total variable costs of $240,000 and fixed costs of $35,000
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