Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $\quad\$ 12,000$
Variable manufacturing costs $\quad\$ 16.00$ per square Best produced 40,000 squares of shingles during March.How much are budgeted total manufacturing costs in March?
A)$640,000
B)$812,000
C)$800,000
D)$652,000

Question

Quizplus · Accepted Answer

The budgeted total manufacturing costs include both fixed and variable costs. Fixed costs remain constant at $12,000 regardless of the production level. Variable costs are $16.00 per square. For 40,000 squares, variable costs are 40,000 x $16 = $640,000. Therefore, total costs are $12,000 (fixed) + $640,000 (variable) = $652,000.

Best Shingle's Budgeted Manufacturing Costs for 50,000 Squares of Shingles $12,000\quad\$ 12,000$12,000

Best Shingle's Budgeted Manufacturing Costs for 50,000 Squares of Shingles $\quad\$ 12,000$