Question

Question 15 Bramble Corp. budgeted manufacturing costs for 65000 tons of steel are: Fixed manufacturing costs...

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

Homework Answers

Answer #1

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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