Answer the following questions using the information below:
Ku-ring-gai & Co expects to sell 25 000 pool cues for $12.00 each.Direct materials costs are $2.00,direct manufacturing labour is $4.00,and manufacturing overhead is $0.80 per pool cue.The following inventory levels apply to 2017:
$$\begin{array} { l r r }
& \text { Beginning inventory } & \text { Ending inventory } \
\text { Direct materials } & 24000 \text { units } & 24000 \text { units } \
\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \
\text { Finished goods inventory } & 2000 \text { units } & 2500 \text { units }
\end{array}$$
-What are the 2018 budgeted costs for direct materials,direct manufacturing labour,and manufacturing overhead,respectively?
A)$0;$96 000;$19 200
B)$80 000;$40 000;$16 000
C)$39 000;$78 000;$15 600
D)$51 000;$102 000;$20 400

Question

Answer the following questions using the information below:
Ku-ring-gai & Co expects to sell 25 000 pool cues for $12.00 each.Direct materials costs are $2.00,direct manufacturing labour is $4.00,and manufacturing overhead is $0.80 per pool cue.The following inventory levels apply to 2017:
 $$\begin{array} { l r r } 
& \text { Beginning inventory } & \text { Ending inventory } \
\text { Direct materials } & 24000 \text { units } & 24000 \text { units } \
\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \
\text { Finished goods inventory } & 2000 \text { units } & 2500 \text { units }
\end{array}$$
-What are the 2018 budgeted costs for direct materials,direct manufacturing labour,and manufacturing overhead,respectively?
A)$0;$96 000;$19 200
B)$80 000;$40 000;$16 000
C)$39 000;$78 000;$15 600
D)$51 000;$102 000;$20 400

Quizplus · Accepted Answer

To calculate the budgeted cost for direct materials, we multiply the expected units to be sold with the direct materials cost per unit, which is $2.00. 
Budgeted cost for direct materials = 25,000 x $2.00 = $50,000

To calculate the budgeted cost for direct manufacturing labor, we multiply the expected units to be sold with the direct manufacturing labor cost per unit, which is $4.00. 
Budgeted cost for direct manufacturing labor = 25,000 x $4.00 = $100,000

To calculate the budgeted cost for manufacturing overhead, we multiply the expected units to be sold with the manufacturing overhead cost per unit, which is $0.80. 
Budgeted cost for manufacturing overhead = 25,000 x $0.80 = $20,000

Therefore, the answer is D, which is $51,000 for direct materials, $102,000 for direct manufacturing labor, and $20,400 for manufacturing overhead.

Answer the Following Questions Using the Information Below: Ku-Ring-Gai -What Are the 2018 Budgeted Costs for Direct Materials,direct Manufacturing

Answer the Following Questions Using the Information Below:
Ku-Ring-Gai -What Are the 2018 Budgeted Costs for Direct Materials,direct Manufacturing