Asked by Kiara Venegas on Jul 11, 2024
Verified
Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame. For the month of June, the company planned for activity of 716 frames, but the actual level of activity was 713 frames. The actual supplies cost for the month was $14,820. The supplies cost in the flexible budget for June would be closest to:
A) $14,820
B) $14,184
C) $14,178
D) $14,238
Supplies Cost
The expense incurred to purchase supplies needed for the operation of a business.
Cost Formula
An equation used to determine the total cost of production or service delivery, factoring in fixed and variable costs.
Flexible Budget
A financial plan that modifies itself in response to variations in volume or activity intensity.
- Evaluate the consequences of genuine activity measures on anticipated budget allocations and revenue streams.
Verified Answer
Learning Objectives
- Evaluate the consequences of genuine activity measures on anticipated budget allocations and revenue streams.
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