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Answer the Following Questions Using the Information Below:
Buildz Manufacturing

Question 54

Multiple Choice

Answer the following questions using the information below:
Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers:
 Direct materials $50 Direct manufacturing labor 10 Variable manufacturing overhead 15 Fixed manufacturing overhead 30 Total manufacturing costs $105\begin{array}{lr}\text { Direct materials } & \$ 50 \\\text { Direct manufacturing labor } & 10 \\\text { Variable manufacturing overhead } & 15 \\\text { Fixed manufacturing overhead } & \underline{30} \\{\text { Total manufacturing costs }} & \$ 105\end{array}
-The plant has capacity for 3,000 tables and is considering expanding production to 3,000 tables.What is the total cost of producing 3,000 tables?


A) $255,000
B) $225,000
C) $175,000
D) $235,000

Correct Answer:

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