Laramie, Inc $\text { Laramie had the following budgeted data }$

question 162

Multiple Choice

Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. $\text { Laramie had the following budgeted data }$
$\begin{array}{lr}\text { Budgeted variable costs per unit: } & \\\text { Direct materials } & \$ 7.00 \\\text { Direct labor } & 10.00 \\\text { Supplies } & 1.00 \\\text { Indirect labor } & 0.50 \\\text { Power } & 0.05\\\\\text { Budgeted fixed overhead for } 2018 \text { : }\\\text { Supervision } & \$ 4,000 \\\text { Depreciation } & 3,000 \\\text { Rent } & 2,000\end{array}$ What are the budgeted costs for rent if 5,000 units were produced?

• A)$2,000
• B)$100,000
• C)$9,000
• D)$45,000

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Definitions:

Apprehensive

Feeling anxiety or fear about the future or something specific.

Free-Floating

A term often used in psychology to describe anxiety that is not attached to specific situations or objects.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, beyond the typical anxiety experienced by individuals.

Repressed

Describes thoughts, memories, or desires that are unconsciously held out of awareness due to being deemed unacceptable or distressing.