Microgen Company Static Budget for 12,000 Units of Production Includes

question 4

Multiple Choice

Microgen Company static budget for 12,000 units of production includes $48,000 for direct materials, $36,000 for direct labor, utilities of $6,000, and supervisor salaries of $18,000.A flexible budget for 14,000 units of production would show:

• A) the same cost structure in total.
• B) direct materials of $56,000, direct labor of $42,000, utilities of $7,000, and supervisor salaries of $18,000.
• C) total variable costs of $126,800.
• D) direct materials of $50,000, direct labor of $37,500, utilities of $6,250, and supervisor salaries of $21,000.

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Definitions:

William Penn

William Penn was an English Quaker leader and advocate of religious freedom who founded the Province of Pennsylvania, the British North American colony that became the U.S. state of Pennsylvania.

Delaware Indians

A Native American tribe, also known as the Lenape, originally from the Delaware River area, who played significant roles in early American history.

Philadelphia

A city in Pennsylvania, significant for its historical role in the founding of the United States.

Dominion of New England

A short-lived administrative union of English colonies in the New England region of North America from 1686 to 1689, imposed by the British government to tighten control.