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1. Newsom Footwear Corporation's flexible budget cost formula for raw material is $2.61 per unit of output. The company's performance report for last month showed a $6,840 unfavorable Flexible Budget variance for raw material. During that month, 17,100 units were produced. Budgeted activity for the month had been 16,700 units. The actual cost per unit for raw materials must have been closest to:
A. $3.01B. $3.49C. $3.41D. $2.61
You're interested in developing the budget but are struggling with basics - do the numbers have to be exact? Can a budget have any flexibility in it? First, describe what a budget is.
Recommend options that would be consistent with the organization's accounting practices, accounting processes, and accounting-relateddepartments.
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