Question 15
Bramble Corp. budgeted manufacturing costs for 65000 tons of
steel are:
Fixed manufacturing costs | $50000 per month |
Variable manufacturing costs | $12 per ton of steel |
Bramble produced 55000 tons of steel during March. How much is the
flexible budget for total manufacturing costs for March?
$830000 |
$700000 |
$660000 |
$710000 |
Answer:
Computation of the flexible budget for total manufacturing costs for March:
Flexible budget for total manufacturing costs for March = (Productio of steel during March × Variable Manufacturing Costs per ton of steel) + Fixed Manufacturing Costs Per month.
Flexible budget for total manufacturing costs for March = ( 55,000 ton × $12 per ton ) + $50,000
Flexible budget for total manufacturing costs for March = $660,000 + $50,000
Flexible budget for total manufacturing costs for March = $710,000
Answer is Option $710,000
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