Jase Manufacturing Co.'s static budget at 7,800 units of production includes $39,000 for direct labor and $2,340 for electric power. Total fixed costs are $39,700. At 10,800 units of production, a flexible budget would show a) variable costs of $41,340 and $39,700 of fixed costs b) variable and fixed costs totaling $81,040 c) variable costs of $57,240 and $54,969 of fixed costs d) variable costs of $57,240 and $39,700 of fixed costs

d) variable costs of $57,240 and $39,700 of fixed costs

Explanation:

                             Total Cost         Cost per unit          Total Costs

                           7800 unit                                             10,800                            

Direct Labor         $39,000               $5                        54000

Electric Power      $2340                 $ 0.3                     3240

Total                        $41340               $ 5.3                   $57240

The fixed Costs would not change .

The variable costs are $ 57240 for 10,800 units and fixed costs are 39,700.

Option D   is the best choice.

Option A is incorrect. The variable costs are not $ 41,340

Option B is incorrect. The variable costs and fixed costs do not sum upto $81,040.

Option C is incorrect. The fixed costs do not change.

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