Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:Fixed manufacturing costs $50,000 per monthVariable m

Question

2 years ago

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Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:Fixed manufacturing costs $50,000 per monthVariable m

anufacturing costs $12.00 per ton of steelNikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?a) $520,000b) $650,000c) $480,000d) $530,000

Business

1 answer:

aleksley [76] · Answer 1 · 2022-10-30T21:30:14+03:00

Answer:

d) $530,000

Explanation:

The computation of the total manufacturing cost for the march month is shown below

= Fixed manufacturing cost + (produced tons × variable manufacturing cost per ton)

= $50,000 + (40,000 Tons × $12.00 per ton)

= $50,000 + $480,000

= $530,000

hence, the total manufacturing cost for the march month is $530,000

Therefore the correct option is d.