Anthony Roofing's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $30,000 Variable ma

Question

3 years ago

14

Anthony Roofing's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $30,000 Variable ma

nufacturing costs $20.00 per square Anthony Roofing actually produced 40,000 squares of shingles during March. How much are the total budgeted manufacturing costs in March for the 40,000 squares of shingles

Business

1 answer:

liberstina [14] · Answer 1 · 2022-04-07T05:05:01+03:00

Answer:

Total budgeted manufacturing cost = $824,000

Explanation:

The total budgeted manufacturing cost is the sum of the variable and fixed manufacturing cost

The fixed manufacturing cost of $30,000 would be absorbed (i.e charged to the units produced using overhead absorption rate (OAR).

OAR = Budgeted fixed manufacturing cost / Budgeted production squares

= $30,000 / 50,000 squares = $0.6 per square

Absorbed fixed manufacturing cost= OAR × actual production of squares

Absorbed fixed manufacturing cost= $0.6 × 40,000 = $24,000

Variable manufacturing cost = $20.00 × 40,000 =800,000

Total budgeted manufacturing cost = $24,000 + $800,000 = $824,000

Total budgeted manufacturing cost = $824,000