Question

The cost formula for utilities expense is $125 plus $3Q. What is total utilities expense for the flexible budget if the planned quantity is 100 units and actual quantity is 127?

Answer 1

The total utilities expense for the flexible budget at the actual quantity of 127 units is $506, calculated by applying the cost formula $125 plus $3 per unit to the actual quantity.

Step-by-step explanation:

The total utilities expense for the flexible budget when the planned quantity is 100 units but the actual quantity is 127 units can be calculated using the given cost formula. The formula provided is $125 plus $3 per unit (Q). Based on this, we can compute for both the planned and actual quantities.

For the planned quantity of 100 units, the total utilities expense is:

$125 + ($3 × 100 units) = $125 + $300 = $425

For the actual quantity of 127 units, the total utilities expense is:

$125 + ($3 × 127 units) = $125 + $381 = $506

Therefore, the total utilities expense for the actual quantity of 127 units is $506.