Wednesday, May 25, 2011

What are the 20x4 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

ACCOUNTING

Multiple Choice

Marguerite, Inc., expects to manufacture and sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 20x4:



Beginning inventory Ending inventory

Direct materials 24,000 units 24,000 units

Work-in-process inventory 0 units 0 units

Finished goods inventory 2,000 units 2,500 units



What are the 20x4 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

a. $0; $96,000; $19,200

b. $39,000; $78,000; $15,600

c. $80,000; $40,000; $16,000

d. $41,000; $82,000; $16,400

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