Based on an Expected Production Level of 30 000 Units

question 16

Multiple Choice

Based on an expected production level of 30 000 units Magnolia Manufacturing's cost $$\begin{array}{l}\text { 1. estimates are: }\\\begin{array} { l l } \text { Direct labour } & \$ 20 \text { per unit } \\\text { Direct materials } & \$ 15 \text { per unit } \\\text { Variable overhead } & \$ 12 \text { per unit } \\\text { Fixed overhead } & \$ 150000\end{array}\end{array}$$ If 33 000 units are actually produced during the period the flexible budget's total production cost is:

• A)$1 716 000
• B)$1 701 000
• C)$1 575 000
• D)$1 560 000

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