Items from Sap Company's Budget for March in Which 2,100

question 75

Multiple Choice

Items from Sap Company's budget for March in which 2,100 units were produced and sold appear below: $\begin{array}{lr}\text { Direct materials } & \$ 12,000 \\\text { Indirect materials\_variable } & 2,000 \\\text { Supervisor salaries } & 10,000 \\\text { Depreciation on factory equipment } & 8,000 \\\text { Direct labour } & 7,000 \\\text { Property taxes on factory } & 3,000 \\\text { Total }&\$42,000\end{array}$ At 2,200 units, how much are budgeted variable manufacturing costs?

• A)$22,000
• B)$43,000
• C)$21,000
• D)$19,905

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Annual Return

The percentage gain or loss on an investment over a one-year period, reflecting the compound rate of return.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically dividends that are paid out before those to common stockholders.