Answer:
$ 12180
Explanation:
Given data in the problem:
Variable cost for each connector = $ 145
Fixed cost per month = $ 7500
Predicted production and sales = 100 connectors
Actual production and sales = 84 connectors
Total cost of the connectors = $ 21000
Now,
The total flexible budget cost for 84 connectors is calculated as:
= 84 × variable cost
or
The total flexible budget cost for 84 connectors = 84 × $ 145
or
The total flexible budget cost for 84 connectors = $ 12180