Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: $\begin{array}{lr}
\text {Fixed manufacturing costs }&\text { $ \$ 12,000 $}\
\text {Variable manufacturing costs }&\text {$ \$ 16.00 $ per square }\
\end{array}$
Best produced 40,000 squares of shingles during March. How much are budgeted total manufacturing costs in March?

Question

Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: $\begin{array}{lr}
\text {Fixed manufacturing costs }&\text { $ \$ 12,000 $}\
\text {Variable manufacturing costs }&\text {$ \$ 16.00 $ per square }\
\end{array}$
 Best produced 40,000 squares of shingles during March. How much are budgeted total manufacturing costs in March?

Quizplus · Accepted Answer

The budgeted total manufacturing costs include both fixed and variable costs. Fixed costs remain constant at $12,000 regardless of production level. Variable costs for 40,000 squares are $16.00 per square, totaling $640,000. Therefore, the total manufacturing costs are $12,000 + $640,000 = $652,000.

Best Shingle's Budgeted Manufacturing Costs for 50,000 Squares of Shingles