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

question 73

Multiple Choice

Use the information below to answer the following question(s) .Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 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 barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019:

-Shamokin Manufacturing produces two products, Big and Bigger.Shamokin expects to sell 10,000 units of product Bigger and to have an inventory of 2,000 units of Bigger on hand at the end of the period.Currently, Shamokin has 800 units of Bigger on hand.Bigger requires two labour operations, molding and polishing.Each unit of Bigger requires one hour of molding and two hours of polishing.The direct labour rate for molding is $20 per molding hour and the direct labour rate for polishing is $25 per polishing hour.The expected number of hours of direct labour for Bigger is

• A)8,800 hours of molding; 17,600 hours of polishing.
• B)11,200 hours of molding; 22,400 hours of polishing.
• C)17,600 hours of molding; 8,800 hours of polishing.
• D)22,400 hours of molding; 11,200 hours of polishing.
• E)10,000 hours of molding; 20,000 hours of polishing.

---

Definitions:

Current Income

Earnings derived from investments or employment that are received regularly, such as dividends or salaries.

High-Dividend Policy

A corporate strategy focusing on paying out a large portion of its earnings to shareholders in the form of dividends.