"The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours

$86,000 and $99,380

Explanation:

The flexible budget formular is fixed at $50,000 plus variable costs

The direct labor hour is $4 per hour

The total budgeted cost at 9,000 hours can be calculated as follows

= $50,000 + ($4×9,000 hours)

= $50,000 + $36,000

= $86,000

The total budgeted cost at 12,345 hours can be calculated as follows

= $50,000 + ( $4×12,345 hours)

= $50,000 + $49,380

= $99,380

Hence the total budgeted cost at 9,000 hours and 12,345 hours is $86,000 and $99,380 respectively

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