Hudson Roofing's budgeted manufacturing costs for 25,000 squares of shingles are:
Fixed manufacturing costs $15,000
Variable manufacturing costs $20.00 per square
Hudson produced 20,000 squares of shingles during March. How much are budgeted total manufacturing costs in March?

Question

Quizplus · Accepted Answer

- Fixed manufacturing costs are the same regardless of the number of squares produced, so they remain at $15,000.
- Variable manufacturing costs are dependent on the number of squares produced, so for 20,000 squares, the cost is 20,000 x $20.00 = $400,000.
- Therefore, the total budgeted manufacturing costs for March would be $415,000 (fixed costs of $15,000 plus variable costs of $400,000).

Thus, the correct answer is D.

Hudson Roofing's Budgeted Manufacturing Costs for 25,000 Squares of Shingles