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erastova [34]
3 years ago
8

Marigold Corp.budgeted manufacturing costs for 70000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manu

facturing costs $12 per ton of steel Marigoldproduced 40000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March
Business
2 answers:
taurus [48]3 years ago
8 0

Answer:

Explanation:

Computation of the flexible budget for total manufacturing costs for March:

Flexible budget for total manufacturing costs for March = (Production of steel during March × Variable Manufacturing Costs per ton of steel) + Fixed Manufacturing Costs Per month.

Flexible budget for total manufacturing costs for March = ( 40,000 ton × $12 per ton ) + $50,000

Flexible budget for total manufacturing costs for March = $480,000 + $50,000

Flexible budget for total manufacturing costs for March = $530,000

Answer is $530,000

Nataly [62]3 years ago
7 0

Answer: $290,000

Explanation:

Flexible budget for 20,000 tons:

Fixed manufacturing costs (Period costs constant irrespective of tons produced) $50,000

Variable manufacturing costs

($12 × 20,000) $240,000

Total Manufacturing costs for 20,000 tons will be:

$50,000 + $240000 = $290,000

Note: Variable costs varies based on the number of units produced whereas Fixed costs are the period costs that are constant irrespective of units produced.

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