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Oriole Company’s budgeted manufacturing costs for 55000 squares of shingles are: Fixed manufacturing costs $12000 Variable...

Oriole Company’s budgeted manufacturing costs for 55000 squares of shingles are: Fixed manufacturing costs $12000 Variable manufacturing costs $16 per square Orioleproduced 40000 squares of shingles during March. How much are budgeted total manufacturing costs in March?

$892000

$640000

$880000

$652000

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Answer #1

Total Manufacturing Cost = Variable Cost of March + Fixed Cost

                                         = (40000 units * 16) + 12000

                                         = $ 652000

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