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:

Working Memory

A cognitive system responsible for temporarily holding and manipulating information necessary for complex tasks such as learning, reasoning, and comprehension.

Larger Units

Larger units refer to comprehensive or expanded quantities, whether measuring physical items, data, or concepts, indicating a scale greater than standard or previously referred to measures.

Visual Imagery

The mental representation of visual experiences, including sights, shapes, and colors, which can be recalled or imagined without the stimulus being present.

System II Thinking

A cognitive process that is slower, more deliberative, and more logical than instinctive and quick System I thinking.