Sanchez Company planned to produce 12,000 units. This level of activity required 20 setups at a cost of $22,000 plus $500 per setup. Actual production was 10,000 units, requiring 15 setups. Actual setup cost was $26,000. At 10,000 units, what is the flexible budget amount for total setup costs?

A.$26,000

B.$22,000

C.$29,500

D.$7,500

Answer rating: 100% (QA)

Actual number of setups used 15 Budgeted Cost per setup 500 Total Fi... View the full answer