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:

Wrist Blood Pressure Monitor

A portable device used to measure blood pressure, designed to be worn on the wrist for convenience.

Home

A place where an individual lives, often considered a place of residence or domicile.

Cuff

A band or strap that encircles the arm or leg to measure blood pressure or secure a garment.

Orthostatic Hypotension

A form of low blood pressure that happens when standing up from sitting or lying down, which can lead to dizziness or fainting.