Final answer:
The flexible budget for Coronado Industries' total manufacturing costs for March when it produced 25,000 tons of steel is $350,000, calculated by adding the fixed costs of $50,000 to the variable costs of $300,000 (25,000 tons at $12 per ton).
Step-by-step explanation:
A flexible budget adjusts costs to match the actual production levels. To calculate the flexible budget for Coronado Industries' manufacturing costs in March when it produced 25,000 tons of steel, we use the fixed manufacturing costs and variable costs per ton. Fixed manufacturing costs remain constant regardless of production levels; hence, the fixed cost would be $50,000 for March. Variable manufacturing costs change with the level of production. Since Coronado has a variable cost of $12 per ton of steel, we multiply this rate by the actual production of 25,000 tons to get the variable costs for March.
To find the total manufacturing costs for March, we add the fixed costs to the total variable costs (25,000 tons x $12 per ton). The calculation is as follows:
$50,000 (fixed costs) + ($12 × 25,000 tons) = $50,000 + $300,000
= $350,000
Therefore, the flexible budget for total manufacturing costs for March is $350,000.