Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: $\begin{array}{ll}
\text {Fixed manufacturing costs }&\$12,000 \
\text {manufacturing costs }&\text { $ \$ 16.00 $ per square} \
\end{array}$
Best produced 40,000 squares of shingles during March.How much are budgeted total manufacturing costs in March?

Question

Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are: $\begin{array}{ll}
\text {Fixed manufacturing costs  }&\$12,000 \
\text {manufacturing costs }&\text { $ \$ 16.00 $ per square} \
\end{array}$
 Best produced 40,000 squares of shingles during March.How much are budgeted total manufacturing costs in March?

Quizplus · Accepted Answer

The budgeted total manufacturing costs include both fixed and variable costs. Fixed costs remain constant at $12,000. Variable costs are $16 per square, so for 40,000 squares, the variable costs are $640,000. Total costs are $12,000 + $640,000 = $652,000.