Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are:
Fixed manufacturing costs $12,000
Variable manufacturing costs $16.00 per square
Best produced 40,000 squares of shingles during March. How much are budgeted total manufacturing costs in March?

Question

Quizplus · Accepted Answer

The budgeted total manufacturing costs include both fixed and variable costs. Fixed costs remain $12,000 regardless of production level. Variable costs for 40,000 squares are 40,000 x $16 = $640,000. Total costs = $12,000 + $640,000 = $652,000.

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