Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:
Fixed manufacturing costs $50,000 per month
Variable manufacturing costs $12.00 per ton of steel
Nikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?

Question

Quizplus · Accepted Answer

The flexible budget for March includes fixed costs of $50,000 and variable costs of $12 per ton for 40,000 tons, totaling $530,000 (40,000 tons x $12 + $50,000).