Response to the following problem:
Scott Company expects to sell 10 million cases of paper towels during the current year. Budgeted costs per case are $24 for direct materials, $18 for direct labor, and $6 (all variable) for manufacturing overhead. Scott began the period with 80,000 cases of finished goods on hand and wants to end the period with 20,000 cases of finished goods on hand.
Compute the budgeted manufacturing costs of the Scott Company for the current period.
Assume no beginning or ending inventory of work-in-process.