Campbell, Inc -Refer to the Figure

question 21

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 is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?

• A)$0
• B)$1,000
• C)$9,000
• D)$18,550

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Definitions:

Acute Care Unit

A hospital department designed to provide immediate treatment for severe, life-threatening conditions.

Emergency Department

A specialized department in a hospital providing immediate care for sudden or severe injuries and illnesses.

Admitted

Being accepted or allowed entry into a hospital, institution, or other facility.

Advance Directives

Legal documents that allow individuals to outline their preferences for end-of-life care before they are unable to communicate their wishes.