Bixley Company Budgets Variable Manufacturing Overhead at 50% of Its

question 122

Multiple Choice

Bixley Company budgets variable manufacturing overhead at 50% of its direct labour costs.The company estimates that 20,000 direct labour hours will be used at an average rate of $11.50 per hour.Bixley's fixed manufacturing overhead costs are budgeted at $90,000 for the year.The company's budgeted manufacturing overhead for the year is

• A)$320,000.
• B)$230,000.
• C)$205,000.
• D)$115,000.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reflected in the payment of interest on loans or debt.

Carrying Value

The value of an asset as shown on a company's balance sheet, accounting for depreciation, amortization, and impairment, also known as the book value.

Present Value

Today's monetary worth of a prospective money sum or set of cash flow transactions, given a set rate of return.

Annuity

A finance option that grants a regular payment sequence to individuals, chiefly employed as income for retired persons.