The master budget at Western Company last period called for sales of 235,000 units at $9.40 each. The costs were estimated to be $3.00 variable per unit and $270,000 fixed. During the period, actual production and actual sales were 240,000 units. The selling price was $9.50 per unit. Variable costs were $3.75 per unit. Actual fixed costs were $270,000. Required: Prepare a flexible budget for Western.

Profit under flexible budget =  $1,266,000  (please  budget below)                                                

Explanation:

Flexible budget is that which is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved using the assumptions of the static budget.

So we will prepare a flexible budget for Western Company for 240,000 units using the assumption of the static budget.

                                Flexible Budget

                                                                                 $

Sales Revenue    (240,000× $9.40) =               2,256,000  

Variable cost      (240,000×  $3.00) =               ( 720,000 )

Contribution                                                          1,536,000

Fixed cost                                                            (270,000)

Profit                                                                  1,266,000

dual credit courses allow you to take a test at the end of the course that, if you pass it with a high enough score, will give you college credit.

answer; i believe both technician (a) and (b) are correct; /// good luck