Jelly Box, Inc.budgeted the following manufacturing costs for 25,000 calculators: $\begin{array}{ll}
\text { Fixed manufacturing costs } & \$ 12,000 \text { per month } \
\text { Variable manufacturing costs } & \$ 16.00 \text { per unit }
\end{array}$ Jelly Box produced 20,000 calculators 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 are $12,000 per month, and variable costs are $16 per unit. For 20,000 units, variable costs are $320,000 (20,000 units x $16). Adding the fixed costs of $12,000 gives a total of $332,000.

Jelly Box, Inc Jelly Box Produced 20,000 Calculators During March