Answer the Following Questions Using the Information Below

question 203

Multiple Choice

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:

-On the 2012 budgeted income statement, what amount will be reported for sales?

• A)$492,000
• B)$480,000
• C)$624,000
• D)$636,000

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Definitions:

Economic Model

A theoretical construct that represents economic processes through a set of variables and a set of logical and/or quantitative relationships between them.

Benefits

Advantages or positive outcomes derived from a particular action, decision, or situation.

Terror Management Theory

A psychological theory suggesting that much of human behavior is motivated by an underlying fear of death, leading individuals to seek symbolic or literal immortality through their actions and beliefs.

Anxiety About Death

A form of anxiety characterized by fear or worry about the inevitability of death and the uncertainty of what follows.