Respuesta :
The fixed cost as per the static budget is $12,000.
What is a fixed cost?
- Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces. They frequently occur again and again, like monthly rent or interest payments. These expenses are often capital expenses as well.
- Costs that are fixed are those that don't change based on volume. Most fixed costs are expenses that depend more on time than on how much your company produces or sells. Rent and leasing charges, salary, energy prices, insurance, and loan repayments are a few examples of fixed costs.
- Rent and mortgage payments are two examples of fixed expenses. Auto loans. Additional loan payments
- Total production costs — (Variable cost per unit multiplied by the number of units produced) = Fixed costs.
Compute the fixed cost as per the static budget as shown below:
Fixed cost-Number of units under static budget Fixed cost per unit
=-4,000 units*$3
=$12,000
Thus, the fixed cost as per the static budget is $12,000.
Fixed cost
Fixed cost remains the same even though there is a change in the level of activity subject to
the condition that the actual production is within the relevant range As the actual production of 5,000 units is within the relevant range of production the fixed
cos does not change
Thus, the amount of fixed cost is $12,000, and the correct option is Option $12.000
If actual production totals 6,000 units, which is within the relevant range, the flexible budget would show fixed costs of: $12.000.
To learn more about fixed costs, refer to:
https://brainly.com/question/20670674
#SPJ4
