Ultimate Vision Corporation Ultimate Vision Corporation Has Two Product Lines: LCD Televisions and LCD

question 146

Multiple Choice

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

• A)$35,000
• B)$45,000
• C)$46,875
• D)$51,923

		LCD TV’s	Projection TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	20
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Refer to Ultimate Vision Corporation.If the company uses number of units produced to allocate factory overhead,the materials handing cost allocated to projection TVs would be:

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Definitions:

Statement of Financial Position

Another term for balance sheet, showing the company's assets, liabilities, and equity at a specific point in time.

Operating Statement

Another term for an income statement, which shows a company's revenue and expenses over a specific period, resulting in the net profit or loss.

Net Income

A company's overall earnings post the deduction of all expenditures, taxes, and operational costs from its gross revenue.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.