Question

Crane Companybudgeted manufacturing costs for 60000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manufacturing costs $12 per ton of steel Craneproduced 40000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?

Answer 1

$530,000

Step-by-step explanation:

Given that

Fixed manufacturing cost = 50000

Variable manufacturing cost = 12 per ton steel

Total number of steal produced = 40000

Recall that

Total manufacturing cost = Total fixed manufacturing cost + total variable manufacturing cost

Total variable manufacturing cost = variable cost per ton × output

= 40000 × 12

= 480,000

Therefore,

Total manufacturing cost = 50000 + 480000

= $ 530,000

Total manufacturing cost = $530,000