In: Accounting
A company's budgeted manufacturing costs for 75,000 units are as follows:
Fixed manufacturing costs $15,000
Variable manufacturing costs $18.00 per unit
The company produced 70,000 units. Under a flexible budget, how much are budgeted total manufacturing costs?
$1,380,000
$1.260,000
$1,365,000
$1,275,000
Answer : $1,275,000
Budgeted manufacturing cost = Variable cost + Fixedcost
= (70,000 × 18)+ 15,000
= 1,260,000 + 15,000
Budgeted manufacturing cost = $1,275,000