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

question 51

Multiple Choice

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 labor?

• A)$840,000
• B)$252,000
• C)$288,000
• D)$280,000
• E)None of the answer choices is correct.

Understand the principles underlying the calculation of gross and net profit margins.

Identify the differences between periodic and perpetual inventory systems.

Calculate gross profit, net profit, and profit margins from given financial information.

Understand the impact of inventory management and pricing strategies on a company’s financial performance.

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Definitions:

Four-category Model

A framework that classifies information or phenomena into four distinct categories for better analysis or understanding.

Self-worth

Self-worth is the sense of one's own value or worth as a person, influencing emotions, motivations, and behaviors, and is a critical component of psychological health.

Belief in One's Abilities

The confidence an individual has in their capacity to accomplish tasks or face challenges, also known as self-efficacy.

Avoidant Attachment Style

Avoidant attachment style refers to a pattern of distancing oneself from emotional intimacy and relying primarily on oneself, as identified in attachment theory.