Accounting · Budgeting
QT Co manufactures a single product and an extract from their flexed budget for production costs is as follows: Activity level: 80% | 90% Direct material: $2,400 | $2,700 Labour: $2,120 | $2,160 Production overhead: $4,060 | $4,080 Total: $8,580 | $8,940 What would the total production cost allowance be in a budget flexed at the 83% level of activity?
- 1$8,698
- 2$8,788
- 3$8,689
- 4$8,688✓
Correct answer
$8,688
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