For a Given Year, the Static Budget of Norton and Cramden

Multiple Choice

For a given year, the static budget of Norton and Cramden Company was developed based on forecasted sales of 12,000 units. Actual sales for the year totaled 14,000 units. The preparation of a flexible budget to evaluate performance by responsibility center should be based on:

A) 12,000 units.
B) 14,000 units.
C) The 13,000 units average of 12,000 and 14,000 units.
D) Some other amount.