Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data: Budgeted variable costs per unit:
Budgeted fixed overhead for 2016:
What are the total budgeted costs for 5,000 units?
A) $9,000
B) $92,750
C) $101,750
D) $110,000

Question

Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data: Budgeted variable costs per unit:
 Budgeted fixed overhead for 2016:
 What are the total budgeted costs for 5,000 units?
A) $9,000 
B) $92,750 
C) $101,750 
D) $110,000

Quizplus · Accepted Answer

Total budgeted variable cost for 5,000 units = $8 x 5,000 = $40,000
Total budgeted fixed overhead for 2016 = $61,750
Total budgeted cost for 5,000 units = Total budgeted variable cost + Total budgeted fixed overhead
= $40,000 + $61,750
= $101,750