Yancey's Sipit Company budgeted manufacturing costs for 25,000 sipits are:
Fixed manufacturing costs $25,000 per month
Variable manufacturing costs $12.00 per sipit
Yancey's produced 20,000 sipits during March. How much is the flexible budget for total manufacturing costs for March?

Question

Quizplus · Accepted Answer

The flexible budget for total manufacturing costs includes both fixed and variable costs. Fixed costs remain constant at $25,000. Variable costs are $12 per sipit, so for 20,000 sipits, the variable costs are 20,000 x $12 = $240,000. Therefore, the total flexible budget is $25,000 + $240,000 = $265,000.

Yancey's Sipit Company Budgeted Manufacturing Costs for 25,000 Sipits Are