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

question 25

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:

-What are the 2018 budgeted costs for direct manufacturing labour?

• A)$62,000
• B)$60,000
• C)$61,000
• D)$59,000
• E)$63,000

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Definitions:

Differential Cost

The difference in cost between two alternative decisions or scenarios, important in the process of making financial decisions.

Book Value

The net value of a company's assets less its liabilities and preferred stock, often used to estimate the company's worth.

Yearly Expense

The total amount of money spent by a business or individual over the course of a year, including operational, administrative, and living expenses.

Old Equipment

Machinery or tools that have been used for a long period and may be outdated or less efficient compared to newer versions.