Answer the Following Questions Using the Information Below:
Kason, Inc

question 155

Multiple Choice

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:
$$\begin{array} { l r r } & \text { Beginning inventory } & \text { Ending inventory } \\\text { Direct materials } & 24,000 \text { units } & 24,000 \text { units } \\\text { Work-in-process inventory } & 0 \text { units } & 0 \text { units } \\\text { Finished goods inventory } & 2,000 \text { units } & 2,500 \text { units }\end{array}$$
-What are the 2016 budgeted costs for direct materials,direct manufacturing labor,and manufacturing overhead,respectively?

• A) $48,000; $96,000; $19,200
• B) $44,000; $88,000; $17,600
• C) $41,000; $82,000; $16,400
• D) $40,000; $80,000; $16,000

---

Definitions:

Spinal Cord

The major column of nerve tissue that is connected to the brain and lies within the vertebral canal and from which the spinal nerves emerge.

Metal Belt Buckle

A device usually made of metal that fastens together the two ends of a belt or strap.

Cold and Pressure Spots

Sensory receptors in the skin that detect changes in temperature and pressure, contributing to the senses of touch and thermal perception.

Sense

A faculty by which the body perceives an external stimulus; one of the faculties of sight, smell, hearing, taste, and touch.