Use the given data shown in the graph. A. What is the budgeted fixed cost per period?B. What is the budgeted variance cost per unit?C. What is the value of F (that is, the flexible budget for an activity of 8,000 units)?D. What is the flexible budget cost amount if the actual activity had been 16,000 units? ### Graph DescriptionThe graph presents a budgetary analysis with the following elements:- **Axes**: - The vertical axis represents "Costs" ranging from $40,000 to $120,000. - The horizontal axis represents "Activity per month" with labeled points at 8,000 units (Actual activity) and 10,000 units (Planned activity).- **Lines**: - **Master Budget Line**: This is a fixed line indicating the projected costs at various activity levels. - **Flexible Budget Line**: This line increases linearly, representing costs that adjust with changes in activity levels.- **Data Point**: - An "Actual costs" point is plotted between the 8,000 and 10,000 unit markers on the horizontal axis, at about $90,000 on the vertical axis.### Required Calculations- **a. Budgeted Fixed Cost per Period?** - Determine the fixed cost that remains constant regardless of activity levels.- **b. Budgeted Variable Cost per Unit?** - Calculate the cost per unit of activity, which varies with the level of activity.- **c. Value of F (Flexible budget for 8,000 units)?** - Calculate the flexible budget amount when the activity level is 8,000 units.- **d. Flexible Budget Cost for 16,000 Units?** - Determine the cost amount if the actual activity reaches 16,000 units.### Table for Calculations| Description | Amount or Rate ||----------------------------|----------------|| a. Budgeted fixed cost | || b. Budgeted variable cost | $____ per unit|| c. Flexible budget cost | $____ |This information can help in understanding variance analysis and adjusting budgets according to actual activity levels.

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.”.a. As per the given graph the flexible budget line start after $40,000 which indicates that $40,000 is the fixed cost. b. Budgeted variable cost per unit=Total cost-Fixed costPlanned activity level=$120,000-$40,00010,000=$8 c. Value of F=Fixed cost+Activity level×Per unit variable cost=$40,000+8,000×$8=$104,000

Answered: Use the given data shown in the graph.…

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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Use the given data shown in the graph. A. What is the budgeted fixed cost per period? B. What is the budgeted variance cost per unit? C. What is the value of F (that is, the flexible budget for an activity of 8,000 units)? D. What is the flexible budget cost amount if the actual activity had been 16,000 units?

### Graph Description

The graph presents a budgetary analysis with the following elements:

- **Axes**:
- The vertical axis represents "Costs" ranging from $40,000 to $120,000.
- The horizontal axis represents "Activity per month" with labeled points at 8,000 units (Actual activity) and 10,000 units (Planned activity).

- **Lines**:
- **Master Budget Line**: This is a fixed line indicating the projected costs at various activity levels.
- **Flexible Budget Line**: This line increases linearly, representing costs that adjust with changes in activity levels.

- **Data Point**:
- An "Actual costs" point is plotted between the 8,000 and 10,000 unit markers on the horizontal axis, at about $90,000 on the vertical axis.

### Required Calculations

- **a. Budgeted Fixed Cost per Period?**
- Determine the fixed cost that remains constant regardless of activity levels.

- **b. Budgeted Variable Cost per Unit?**
- Calculate the cost per unit of activity, which varies with the level of activity.

- **c. Value of F (Flexible budget for 8,000 units)?**
- Calculate the flexible budget amount when the activity level is 8,000 units.

- **d. Flexible Budget Cost for 16,000 Units?**
- Determine the cost amount if the actual activity reaches 16,000 units.

### Table for Calculations

| Description | Amount or Rate |
|----------------------------|----------------|
| a. Budgeted fixed cost | |
| b. Budgeted variable cost | $____ per unit|
| c. Flexible budget cost | $____ |

This information can help in understanding variance analysis and adjusting budgets according to actual activity levels.

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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