High School

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 steel

Vaughn produced 60000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March

$720000

$760000

$890000

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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