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

question 153

Multiple Choice

Use the information below to answer the following question(s) .Marguerite Inc..expects to sell 20,000 pool cues for $20.00 each.Direct materials costs are $2.00, direct manufacturing labour is $12.00, and manufacturing overhead is $0.80 per pool cue.Each pool cue 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 pool cue 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 2019:

-On the 2019 budgeted income statement, what amount will be reported for gross margin?

• A)$124,000
• B)$104,000
• C)$312,000
• D)$160,000
• E)$400,000

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Definitions:

Infantile Amnesia

The inability of adults to recall memories from early childhood, typically before the age of 3 or 4.

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The anterior part of the frontal lobes of the brain, implicated in a variety of complex behaviors including planning, decision making, and moderating social behavior.

Elaboration

The addition of more detail, explanation, or information to a concept, idea, or proposal.

Automaticity

The ability to perform tasks without occupying the mind with the low-level details, achieved through repetition and practice.