Campbell, Inc -Refer to the Figure

question 6

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 budgeted costs for materials if 5,000 units were produced?

• A)$4,000
• B)$9,000
• C)$35,000
• D)$50,000

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Definitions:

Countercyclical Payments

Payments made by the government to counteract economic downturns, aimed at stabilizing the economy by increasing spending during low periods.

Farm Commodities

Basic agricultural products that are used both for consumption and as inputs in the production of other goods.

Food Products

Food products encompass items that are processed, prepared, and packaged to be consumed as meals or snacks.

Price Elasticity Coefficient

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating sensitivity to price changes.