Asked by Yoylen Santana on Mar 10, 2024
Verified
The occupancy expenses in the flexible budget for December would be closest to:
A) $15,565
B) $16,114
C) $15,945
D) $16,030
A) $15,565
B) $16,114
C) $15,945
D) $16,030
Occupancy Expenses
Costs related to occupying a physical space, such as rent, utilities, and property taxes.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity level, allowing better analysis and control over performance.
- Determine the consequence of expenditures on occupancy, premises, and resources on the flexibility of budgets.
Verified Answer
HS
Hunter Smith
Mar 10, 2024
Final Answer :
B
Explanation :
To calculate the occupancy expenses in the flexible budget for December, we need to multiply the December budgeted units (10,000) with the budgeted occupancy cost per unit ($1.611).
Occupancy expenses in the flexible budget for December = 10,000 x $1.611 = $16,110
Therefore, the closest option is B) $16,114.
Occupancy expenses in the flexible budget for December = 10,000 x $1.611 = $16,110
Therefore, the closest option is B) $16,114.
Explanation :
Cost = Fixed cost + (Variable cost per unit × q)
= $9,100 + ($2.10 × 3,340)= $16,114
= $9,100 + ($2.10 × 3,340)= $16,114
Learning Objectives
- Determine the consequence of expenditures on occupancy, premises, and resources on the flexibility of budgets.
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