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

question 72

Multiple Choice

Use the information below to answer the following question(s) .Konrade Inc.expects to sell 30,000 athletic uniforms for $80 each in 2019.Direct materials costs are $20, direct manufacturing labour is $8, and manufacturing overhead is $6 for each uniform.Each uniform requires 2.0 square metres (sq.m.) of material which is all added at the start of production.The following inventory levels are expected to apply to 2019:

-What is the amount budgeted for cost of goods sold in 2019?

• A)$1,156,000
• B)$986,000
• C)$840,000
• D)$2,400,000
• E)$1,020,000

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Definitions:

Machine-Hours

A measure of production output or activity based on the number of hours machines are run, used in allocating machine-related costs to products.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with the level of production output, such as utilities or materials.

Machine-Hours

A measure of production time, representing the number of hours machines are operated in the production process.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with production volume, such as utilities or materials, contrasting with fixed overhead costs.