Question

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

Answer 1

$710,000

Step-by-step explanation:

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

Workings

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