Ask Question
7 March, 00:07

Marigold Corp. budgeted manufacturing costs for 70000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manufacturing costs $12 per ton of steel Marigoldproduced 40000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March

+5
Answers (2)
  1. 7 March, 00:28
    0
    Computation of the flexible budget for total manufacturing costs for March:

    Flexible budget for total manufacturing costs for March = (Production of steel during March * Variable Manufacturing Costs per ton of steel) + Fixed Manufacturing Costs Per month.

    Flexible budget for total manufacturing costs for March = (40,000 ton * $12 per ton) + $50,000

    Flexible budget for total manufacturing costs for March = $480,000 + $50,000

    Flexible budget for total manufacturing costs for March = $530,000

    Answer is $530,000
  2. 7 March, 03:51
    0
    Answer: $290,000

    Explanation:

    Flexible budget for 20,000 tons:

    Fixed manufacturing costs (Period costs constant irrespective of tons produced) $50,000

    Variable manufacturing costs

    ($12 * 20,000) $240,000

    Total Manufacturing costs for 20,000 tons will be:

    $50,000 + $240000 = $290,000

    Note: Variable costs varies based on the number of units produced whereas Fixed costs are the period costs that are constant irrespective of units produced.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Marigold Corp. budgeted manufacturing costs for 70000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manufacturing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers