Laramie, Inc What Is the Difference in Total Budgeted Costs Between the Company

question 200

Multiple Choice

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

• A)$-0-
• B)$18,550
• C)$1,000
• D)$9,000

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