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

question 85

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 2016:

-What are the 2016 budgeted costs for direct manufacturing labour?

• A)$59,700
• B)$60,300
• C)$60,700
• D)$240,000
• E)$60,000

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Definitions:

Utmost Good Faith

A legal doctrine requiring parties in certain types of contracts, such as insurance, to act honestly and disclose all relevant information.

Transaction

The act of conducting business or exchanging goods, services, or financial assets between parties.

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A legal document granting one individual the authority to act on behalf of another in legal or financial matters.