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 3,000 units?
A) $3,000
B) $55,650
C) $64,650
D) $27,000

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 3,000 units?
A) $3,000 
B) $55,650 
C) $64,650 
D) $27,000

Quizplus · Accepted Answer

Using the formula Total Budgeted Costs = (Budgeted Fixed Overhead + (Budgeted Variable Cost per Unit x Number of Units)), we can calculate the total budgeted costs for 3,000 units: 
Total Budgeted Costs = (8,650 + (9 x 3,000)) = $64,650