ATR Corporation's budgeted product costs for the third quarter of 20x2 were based on an expected volume of 1,500 units. The budgeted unit costs appear below: Direct material $ 1.50
Direct labour 2.25
Variable overhead 4.25
Fixed overhead 3.00
Total $11.00
ATR's total budgeted product cost for the third quarter of 20x2 was:
A)$16,500
B)$12,000
C)$4,500
D)None of the above

Question

Quizplus · Accepted Answer

The total budgeted product cost is calculated by multiplying the budgeted unit cost ($11.00) by the expected volume (1,500 units), which equals $16,500.

ATR Corporation's Budgeted Product Costs for the Third Quarter of 20x2