Use the Information Below to Answer the Following Question(s)

question 62

Multiple Choice

Use the information below to answer the following question(s) .Daniel Inc.expects to sell 6,000 ceramic vases for $20 each in 2018.Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase.Each vase requires 0.5 kilograms (kg) of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.The following inventory levels are expected to apply to 2018:

-On the 2018 budgeted income statement, what amount will be reported for gross margin?

• A)$122,000
• B)$90,000
• C)$48,000
• D)$30,000
• E)$120,000

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Definitions:

Papillae

Small bumps on the tongue that contain taste buds, responsible for sensing taste.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing, converting sound vibrations into nerve impulses.

Snail-Shaped

Describing something that resembles the spiral shape of a snail's shell, often used in reference to the cochlea in the ear.

Hair Cells

Sensory cells found in the inner ear that are critical for hearing and balance, converting mechanical sound vibrations into electrical signals.