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Based on an Expected Production Level of 30 000 Units

Question 27

Multiple Choice

Based on an expected production level of 30 000 units Magnolia Manufacturing's cost  1. estimates are:  Direct labour $20 per unit  Direct materials $15 per unit  Variable overhead $12 per unit  Fixed overhead $150000\begin{array}{l}\text { 1. estimates are: }\\\begin{array} { l l } \text { Direct labour } & \$ 20 \text { per unit } \\\text { Direct materials } & \$ 15 \text { per unit } \\\text { Variable overhead } & \$ 12 \text { per unit } \\\text { Fixed overhead } & \$ 150000\end{array}\end{array} If 33 000 units are actually produced during the period the flexible budget's total production cost is:


A) $1 716 000
B) $1 701 000
C) $1 575 000
D) $1 560 000

Correct Answer:

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