Answer:
Total cost= $50,000
Explanation:
Giving the following information:
Fixed costs equal $25,000
Variable cost per unit is $2.50
Units produced=10,000
To calculate the total costs, we need to use the following formula:
Total cost= fixed costs + total variable cost
Total cost= 25,000 + 2.5*10,000
Total cost= $50,000
The Total budgeted cost when the fixed cost, variable cost per unit is given should be $50,000.
Since
Fixed costs equal $25,000
The variable cost per unit is $2.50
Units produced=10,000
Now the following formula is used
Total cost= fixed costs + total variable cost
Total cost= 25,000 + 2.5*10,000
Total cost= $50,000
Basically we added the fixed cost and the total variable cost so that the total cost could come.
hence, The Total budgeted cost is $50,000.
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