Campbell, Inc -Refer to the Figure

question 32

Multiple Choice

Campbell, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Campbell had the following budgeted data:
$\begin{array}{llr} \text { Budgeted variable costs per unit } &\\ \text {Direct materials } &\$7.00\\ \text {Direct labour } &10.00\\ \text { Supplies } &1.00\\ \text { Indirect labour } &0.50\\ \text { Power } &0.05\\\end{array}$


$\begin{array}{l}\text { Budgeted fixed overhead for } 2011 \\\text { Supervision } & \$ 4,000 \\\text { Depreciation } & 3,000 \\\text { Rent } & 2000\end{array}$
-Refer to the figure.What are the total budgeted costs for 5,000 units?

• A)$9,000
• B)$92,750
• C)$101,750
• D)$110,000

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Definitions:

Defibrillator Product

A medical device used to deliver a dose of electric current (shock) to the heart to treat life-threatening cardiac dysrhythmias.

Present Value

Today's value of a future money sum or cash flow sequence, calculated using a predetermined return rate.

Lifecycle

The series of stages that an entity—such as a product, project, or individual—goes through during its existence, from inception to termination or renewal.

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a product or service.