Question

Sunland Company’s budgeted manufacturing costs for 50000 squares of shingles are: Fixed manufacturing costs $12000 Variable manufacturing costs $16.00 per square Sunland produced 30000 squares of shingles during March. How much are budgeted total manufacturing costs in March? $480000 $492000 $812000 $800000

Answer 1

Answer:

$492,000

Explanation:

Data provided in the question:

Budgeted units manufactured = 50,000 squares

Fixed manufacturing costs = $12000

Variable manufacturing costs =  $16.00 per square

Actual units produced = 30,000 squares of shingles

Now,

Budgeted Total Manufacturing Costs = Fixed Cost + Variable Cost

or

Budgeted Total Manufacturing Costs

= $12,000 + $16.00 × Actual units produced

= $12,000 + $16.00 × 30,000

= $12,000 + $480,000

= $492,000