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

question 119

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:

-How many pool cues need to be produced in 2012?

• A) 22,500 cues
• B) 18,000 cues
• C) 20,000 cues
• D) 19,500 cues
• E) 20,500 cues

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Definitions:

Public Saving

is the difference between the taxation revenue that the government receives and its spending.

National Saving

The total amount of savings generated within a country, including both private and public savings, which is key to funding investment.

Tariff

A tax imposed by a government on imported goods, often to protect domestic industries from foreign competition.

Imports

Goods and services bought from foreign countries for domestic consumption or use.