We appreciate your visit to Vaughn Manufacturing budgeted manufacturing costs for 70000 tons of steel are Fixed manufacturing costs 50000 per month Variable manufacturing costs 12 00 per ton of. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
The flexible budget for total manufacturing costs for March is $770,000. None of the provided options (a, b, c) match this amount, so none of the options are correct.
To calculate the flexible budget for total manufacturing costs for March, we need to consider both fixed and variable costs.
Fixed manufacturing costs are $50,000 per month, which remains constant regardless of the level of production.
Variable manufacturing costs are $12.00 per ton of steel. Since Vaughn produced 60,000 tons of steel in March, the variable manufacturing costs can be calculated as follows:
Variable manufacturing costs = Variable cost per ton * Tons of steel produced
Variable manufacturing costs = $12.00 * 60,000
Variable manufacturing costs = $720,000
Now, calculate the total manufacturing costs by adding the fixed and variable costs:
Total manufacturing costs = Fixed manufacturing costs + Variable manufacturing costs
Total manufacturing costs = $50,000 + $720,000
Total manufacturing costs = $770,000
Therefore, the flexible budget for total manufacturing costs for March is $770,000. None of the provided options (a, b, c) match this amount, so none of the options are correct.
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