In the Goblette Manufacturing Company Indirect Labor Is Budgeted for $108000

question 46

Multiple Choice

In the Goblette Manufacturing Company indirect labor is budgeted for $108000 and factory supervision is budgeted for $36000 at normal capacity of 160000 direct labor hours. If 180000 direct labor hours are worked flexible budget total for these costs is:

• A) $144000.
• B) $162000.
• C) $157500.
• D) $148500.

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Definitions:

Supply Functions

Mathematical functions that describe the quantity of a good that producers are willing to sell at different prices, holding other factors constant.

Price Ceiling

A legally imposed limit on how high the price of a product can be charged in the market, usually set to protect consumers from excessively high prices.

Minimum Imposed Price

A price floor set by the government or regulatory body, below which a good or service cannot be sold, often to protect producers.

Consumers

Individuals or groups that purchase goods and services for personal use rather than for manufacturing or resale purposes.