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

Click here for the SOLUTION