At the start of 2021, X Company developed the following budgeted total cost function: $9.52X + $234,700, where X is number of units produced. Budgeted production for the year was 10,600 units, but actual production for the year was 9,400 units. Actual total costs were $308,189. What was the 2021 flexible budget variance for total costs [a positive number means a favorable variance and a negative number means an unfavorable variance]? A: $11,088 B: $12,530 C: $14,158 D: $15,999 E: $18,079 F: $20,429
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
At the start of 2021, X Company developed the following budgeted total cost function: $9.52X + $234,700, where X is number of units produced. Budgeted production for the year was 10,600 units, but actual production for the year was 9,400 units. Actual total costs were $308,189.
What was the 2021 flexible
| A: $11,088 | B: $12,530 | C: $14,158 | D: $15,999 | E: $18,079 | F: $20,429 |
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