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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Definitions:

Shared Assumptions

The common beliefs or understandings that members of a group or organization hold to be true, often unconsciously, which shape their behaviors and attitudes.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Organizational Ambidexterity

The ability of an organization to balance and manage both exploitative activities (improving existing operations) and exploratory activities (innovation and new opportunities) efficiently.

Innovative Adaptation

The process of adjusting and inventing new methods or products to respond to changing environments or needs creatively.