Question

Marigold Manufacturing uses a flexible budget. It has the following budgeted manufacturing costs for 25800 pairs of shoes: Fixed Manufacturing Costs, $12300 and Variable Manufacturing Costs, $11.00 per pair of shoes. If Marigold Manufacturing makes 19900 pairs of shoes this month, what are the total budgeted manufacturing cost for the month?

Answer 1

Answer:

$231,200

Explanation:

The computation of the total budgeted manufacturing cost is shown below:

= Fixed Manufacturing Costs + Variable Manufacturing Costs per pair of shoes × number of shows made this month

= $12,300 + $11 × 19,900 shoes

= $12,300 + $218,900

= $231,200

We simply added the Fixed Manufacturing Costs and variable manufacturing cost so that the exact value might arrive.