Question

In: Accounting

A company's budgeted manufacturing costs for 75,000 units are as follows:


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

Solutions

Expert Solution

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


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