The actual information pertains to the month of June. As a part of the budgeting process,...

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The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed th Operating profit $11,700 $ $64,020 The flexible budget will report for the fixed costs. O A. $324,173 OB. $230,069 OC. $327,0

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Answer 1

Answer #1

Solution: The Answer is D. $271,900.

Explanation:

1) Flexible budget will be always change as per the changes in output / volume /activity.

2) But such changes are limited to variable cost.

3) Fixed cost does not changes. flexible and static budget remains same in case of fixed costs.

4) Differences between flexible and static budget comes only for the variable expenses.

5) Static budget fixed costs will be flexible budget fixed cost.

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Answer 2

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