A company reported the following cost information for the last fiscal year when it produced 100,000 units.
Direct labor                                            $200,000
Direct materials                                       100,000
Manufacturing overhead                         200,000
Selling and administrative expenses      150,000
All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expenses. Using flexible budgeting, what are the total costs associated with producing and selling 110,000 units?
A. $450,000
B. $695,000
C. $715,000
D. $650,000

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Variable cost Fixed costs Direct labor 200000 Direct materials 100000 0 Manufacturing over... View the full answer