Use the Information Below to Answer the Following Questions Other Relevant Information: Management Has Budgeted for 20,000 Direct Labour

question 14

Multiple Choice

Use the information below to answer the following questions.
Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a web-page design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below:
$$\begin{array} { l r } \text { Sales } & \$ 550,000 \\\text { Direct materials } & 40,000 \\\text { Direct labour } & 300,000 \\\text { Variable overhead } & 5,000 \\\text { Advertising for business } & 5,000 \\\text { Depreciation on equipment } & 30,000 \\\text { Administration } & 27,000 \\\text { Interest } & 10,000 \\\text { Profit before tax } & 133,000\end{array}$$ Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below:
$$\begin{array} { l r } \text { Direct materials } & \$ 400 \\\text { Direct labour (100 hours) } & \$ 1,500\end{array}$$
-Refer to the table above.Total budgeted direct costs for the year are:

• A) $345,000.
• B) $340,000.
• C) $375,000.
• D) $300,000.

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Definitions:

Transcription

The process by which the information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA).

Kinetochore

Structural portion of the chromosome to which microtubules attach.

Basal Body

A cellular structure found at the base of a eukaryotic flagellum or cilium, acting as a microtubule organizing center and initiating the growth of the appendage.

Dynein Arm

A motor protein complex that moves along microtubules, important for the movement of cilia and flagella and intracellular transport.