Graphic comparison of budgeted and actual costs

a. Given the data shown in the graph, what is the budgeted variable cost per unit?
b. What is the flexible budget cost for an activity level of 2,000,000 units (C on the graph)?
c. If the actual activity had been 4,000,000 units, what would have been the flexible budget costamount?

Transcribed Image Text:

Costs Master Budget Flexible Budget Line 6,000,000- - -_- - --_- - - $4,000,000-- 77Costs $2,000,000 Activity per Period 2,500,000 Units Planned Activity