TrueMasons' budgeted costs for 25,000 linear metres of block are: $\begin{array}{llcc}
\text { Fixed manufacturing costs } & \text { $ \$ 12,000 $ per month } \
\text { Variable manufacturing costs } & \text { $ \$ 16.00 $ per linear metre} \

\end{array}$
True Masons installed 20,000 linear metres of block during March.How much is budgeted total manufacturing costs in March on TrueMason's flexible budget?
A)$320,000
B)$412,000
C)$400,000
D)$332,000

Question

TrueMasons' budgeted costs for 25,000 linear metres of block are: $\begin{array}{llcc}
  \text { Fixed manufacturing costs } & \text { \( \$ 12,000 $ per month   } \
 \text { Variable manufacturing costs  } & \text {  $ \$ 16.00 $ per linear metre} \

\end{array}\)
 True Masons installed 20,000 linear metres of block during March.How much is budgeted total manufacturing costs in March on TrueMason's flexible budget?
A)$320,000
B)$412,000
C)$400,000
D)$332,000

Quizplus · Accepted Answer

The budgeted total manufacturing costs for March can be calculated by adding the fixed manufacturing costs to the variable manufacturing costs for the actual production level. Fixed costs remain the same at $12,000. Variable costs are $16.00 per linear metre, so for 20,000 linear metres, the variable costs are 20,000 * $16 = $320,000. Adding the fixed costs of $12,000 to the variable costs of $320,000 gives a total of $332,000.

TrueMasons' Budgeted Costs for 25,000 Linear Metres of Block Are