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
