Asked by Kevin Wiley Jr. on Apr 27, 2024

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The direct materials in the flexible budget for January would be closest to:

A) $130,599
B) $134,694
C) $130,410
D) $135,084

Direct Materials

Raw materials that can be directly attributed to the production of finished goods, considered a variable cost.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing companies to better forecast costs and revenues.

  • See and measure a variety of spendings and income in both fixed and elastic budgets.
  • Discern the involvement of direct labor, direct materials, and specific budgetary items in the planning of finances.
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Verified Answer

KB
Kimberly Bradway

Apr 29, 2024

Final Answer :
A
Explanation :
Cost = Fixed cost + (Variable cost per unit × q)
= $0 + ($18.90 × 6,910)= $130,599