[amp_mcq option1=”$36,000″ option2=”$46,000″ option3=”$56,000″ option4=”$14,000″ correct=”option1″]<\/p>\n
The correct answer is A. $36,000.<\/p>\n
The flexible budget is a budget that is adjusted for changes in the level of activity. In this case, the level of activity has increased, so the flexible budget amount is higher than the static budget amount. The static budget is a budget that is prepared for a specific level of activity.<\/p>\n
To calculate the flexible budget amount, we need to know the actual result, the static budget amount, and the activity variance. The activity variance is the difference between the actual level of activity and the budgeted level of activity. In this case, the activity variance is $14,000 favorable.<\/p>\n
The flexible budget amount is calculated as follows:<\/p>\n
Flexible budget amount = Static budget amount + Activity variance<\/p>\n
Flexible budget amount = $25,000 + $14,000<\/p>\n
Flexible budget amount = $36,000<\/p>\n
Option B is incorrect because it is the static budget amount, which is not adjusted for changes in the level of activity. Option C is incorrect because it is the sum of the actual result and the activity variance. Option D is incorrect because it is the static budget amount minus the activity variance.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”$36,000″ option2=”$46,000″ option3=”$56,000″ option4=”$14,000″ correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47898","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n