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Exhibit 10-2 Benny's Bakery Produces Bagels for Resale at Local Grocery Stores.The

question 23

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Exhibit 10-2
Benny's Bakery produces bagels for resale at local grocery stores.The master budget indicates that the company expects to use 2.5 pounds of direct materials for each unit produced at a cost of $10.00 per pound (one unit = one batch of bagels) .Each unit produced will require 0.30 direct labor hours at a cost of $24.00 per hour.Variable manufacturing overhead is applied based on direct labor hours at a rate of $4.80 per hour.Last year's sales were expected to total 40,000 units.Benny just received last year's actual results showing sales of 35,000 units.
-Refer to Exhibit 10-2.What amount would the flexible budget show for direct materials?

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Definitions:

Health Maintenance Organizations

A type of health insurance plan that provides comprehensive health services to members for a fixed, prepaid fee, emphasizing preventative care.

Americans With Disabilities Act

U.S. civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

ADA

The Americans with Disabilities Act, a civil rights law that prohibits discrimination based on disability.

Social Security Act

A 1935 US law establishing a system of federal old-age benefits, and providing for unemployment insurance, disability insurance, and survivors' insurance.