Tanya Inc.’s static budget for 10,000 units of production includes P60,000 for direct materials, P44,000 for direct labor, fixed utilities costs of P5,000, and supervisor salaries of P15,000. A flexible budget for 12,000 units of production would show: *       A. The same cost structure in total   B. Direct materials of P72,000, direct labor of P52,800, utilities of P5,000, and supervisor salaries of P15,000   C. Direct materials of P60,000, direct labor of P52,800, utilities of P6,000, and supervisor salaries of P15,000   D. Total variable costs of P148,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Tanya Inc.’s static budget for 10,000 units of production includes P60,000 for direct materials, P44,000 for direct labor, fixed utilities costs of P5,000, and supervisor salaries of P15,000. A flexible budget for 12,000 units of production would show: *
 
 
 
A. The same cost structure in total
 
B. Direct materials of P72,000, direct labor of P52,800, utilities of P5,000, and supervisor salaries of P15,000
 
C. Direct materials of P60,000, direct labor of P52,800, utilities of P6,000, and supervisor salaries of P15,000
 
D. Total variable costs of P148,800
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