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kozerog [31]
2 years ago
9

Sunland Companybudgeted manufacturing costs for 60000 tons of steel are: Fixed manufacturing costs $50000 per month Variable man

ufacturing costs $12 per ton of steel Sunlandproduced 55000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March
Business
1 answer:
taurus [48]2 years ago
6 0

Answer:

$710,000

Explanation:

A flexible budget is a type of budget that changes in relative to the volume of output

<u>Workings</u>

Monthly Fixed manufacturing cost - $50,000

Variable cost /Ton - $12

Production in March -55000

Variable cost of production in March - $(12*55000) = $660,000

Total manufacturing cost = Fixed cost + Variable cost

                                             $660,000 + $50,000= $710,000

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