Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data:

- What are the total budgeted costs for 3,000 units?
A) $3,000
B) $55,650
C) $64,650
D) $27,000

Question

Campbell, Inc., has an operating environment with considerable uncertainty.The company prepares the budget for several different volume levels. Campbell had the following budgeted data:

- What are the total budgeted costs for 3,000 units?
A) $3,000 
B) $55,650 
C) $64,650 
D) $27,000

Quizplus · Accepted Answer

From the given data, we can see that the total variable cost per unit is $18.50 ($10 + $4.50 + $4). Therefore, the total variable cost for 3,000 units (fixed cost + (variable cost per unit x number of units)) would be $55,500 ($18.50 x 3,000). Adding the fixed costs ($9,150) to the variable costs gives a total budgeted cost of $64,650 for 3,000 units. Therefore, the correct choice is C.