First Class, Inc

question 107

Multiple Choice

First Class, Inc., expects to sell 29,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $5, and manufacturing overhead is $0.83 per pool cue. The following inventory levels apply to 2019:

What are the 2019 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

• A) $72,000; $120,000; $19,920
• B) $90,600; $151,000; $25,066
• C) $91,800; $153,000; $25,398
• D) $87,000; $145,000; $24,070

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Definitions:

Dividends In Arrears

Outstanding dividends on cumulative preference shares that have not been paid by the company in the time stipulated.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and entitlement to dividends.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Par

This refers to the face value of a bond or stock as stated by the issuing company.