Answered

lightsey natural dying corporation measures its activity in terms of skeins of yarned dyed. last month the budgeted level of activity was 14,800 skeins and the actual level of activity was 15,100 skeins. the companys owners bidgets for dye costs a variable cost at $0.51 per skein. the actual dye cost las month was $8,660. in the companys flexible budget performance report for last month what would have been the flexible budget for dye costs?

Answer :

Answer: $7701

Explanation:

The following information can be gotten from the question:

Budgeted level of activity = 14,800

Actual level of activity = 15,100

Variable cost = $0.51

Actual dye cost = $8,660

Flexible budget for dye costs will now be calculated as:

= Actual level of activity x Variable cost

= 15,100 x 0.51

= $7,701

Therefore, the flexible budget is $7701

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