Question

Bonita Industries budgeted manufacturing costs for 65000 tons of steel are: Fixed manufacturing costs$50000 per month Variable manufacturing costs$12 per ton of steel Bonita produced 50000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March

Answer 1

Total cost= $650,000

Step-by-step explanation:

Giving the following information:

Fixed manufacturing costs$50000 per month

Variable manufacturing costs$12 per ton of steel

Bonita produced 50000 tons of steel during March.

The flexible budget shows the total standard cost for the actual activity.

Fixed costs= 50,000

Total variable cost= 12*50,000= 600,000

Total cost= $650,000