Asked by Yanna Listana on May 01, 2024

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Best Shingle's budgeted manufacturing costs for 50000 squares of shingles are: Fixed manufacturing costs $12,000\quad\quad\quad \$ 12,000$12,000
Variable manufacturing costs $16.00\quad\quad\$ 16.00$16.00 per square Best produced 40000 squares of shingles during March. How much are budgeted total manufacturing costs in March?

A) $640000
B) $812000
C) $800000
D) $652000

Budgeted Manufacturing

The estimated amounts and costs associated with the production process, as planned for a specific period.

Variable Manufacturing

Costs in manufacturing that vary with the level of production output, such as raw materials and direct labor costs.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.

  • Study the connection between levels of activity and financial budgeting.
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JM
juan manuel echeverry muñozMay 06, 2024
Final Answer :
D
Explanation :
The total manufacturing costs for March can be calculated by adding the fixed manufacturing costs to the variable manufacturing costs for the actual production. Fixed costs remain the same at $12,000. Variable costs are $16.00 per square for 40,000 squares, which equals $640,000. Adding these together gives $12,000 + $640,000 = $652,000.