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

question 68

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 2012:

-On the 2012 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:

Gross Domestic Product

Often abbreviated as GDP, Gross Domestic Product measures the total economic output of a country, including the monetary value of all goods and services produced within its borders in a specific timeframe.

Gross Domestic Product

The entire monetary or market valuation of all last-stage goods and services produced inside the borders of a country over a given time period.

Manufactured Capital

Physical assets created by humans to assist production, such as machinery, buildings, and infrastructure.

Pollution Control

The practices and policies directed towards regulating, reducing or eliminating the release of pollutants into the environment.