Use the Following Information to Answer Questions
EKPN Company

question 77

Multiple Choice

Use the following information to answer questions
EKPN Company prepared the following data in its static budget based on 150,000 machine hours:
$$\begin{array} { l l } \text { Direct Materials } & \$ 4 5 0 , 0 0 0 \\\text { Direct Labour } & 2 2 5 , 0 0 0 \\\text { Variable Overhead } & 1,125,000 \\\text { Fixed Overhead } & \mathbf { 2 } , 100,000\end{array}$$ $$\begin{array} { l l } \text { Actual Results: } & \\\text { Machine Hours } & 160,000 \text { hours } \\\text { Direct Materials } & \$ 475,000 \\\text { Direct Labaur } & 2 4 5 , 000 \\\text { Variable Overhead } & 1,150,000 \\\text { Fixed Overhead } & \mathbf { 2 } , 110,000\end{array}$$
-What is the budgeted direct labour cost at the actual level of activity?

• A)$245,000
• B)$240,000
• C)$210,938
• D)$20,000

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Definitions:

Extensibility

The capability of muscle tissue to be stretched or extended without being damaged.

Contractility

The capability of muscle tissue to contract or shorten, generating force and movement.

Secretion

The process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.

Intercalated Discs

Specialized connections between cardiomyocytes, containing gap junctions and desmosomes, facilitating synchronized heart contractions.