ACCA PM · Chapter 10 · Question 7 of 9
The original budget for 10,000 units included: variable costs $60,000; semi-variable costs $35,000 (of which $15,000 is fixed); and fixed costs $40,000. Actual output was 12,000 units. What is the total flexed budget cost?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $151,000
Explanation
Variable cost per unit = $60,000 / 10,000 = $6; flexed = 12,000 x $6 = $72,000. Semi-variable: variable element $20,000 / 10,000 = $2 per unit, so 12,000 x $2 = $24,000 plus $15,000 fixed = $39,000. Fixed costs stay at $40,000. Total = $72,000 + $39,000 + $40,000 = $151,000.
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