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Question 45 Bramble Corp. budgeted costs for 65000 linear feet of block are: Fixed manufacturing costs...

Question 45 Bramble Corp. budgeted costs for 65000 linear feet of block are: Fixed manufacturing costs $24000 per month Variable manufacturing costs $16 per linear foot Bramble installed 55000 linear feet of block during March. How much is budgeted total manufacturing costs in March? $1040000 $1064000 $904000 $880000

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Answer #1

Answer : Total manufacturing cost = $904000

Solution -

Budgeted total manufacturing costs = total fixed manufacturing cost + total variable manufacturing cost.

= $24000 + ($16×55000)

=$24000 + $880000

= $904000

Note : the fixed budgeted at 65000 linear feet of block will be same when 55000 linear feet is produced. This is because, the fixed is period cost and it don't change because of changes in production volume in that period.

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