At the Beginning of the Period,the Assembly Department Budgeted Direct

question 63

Multiple Choice

At the beginning of the period,the Assembly Department budgeted direct labor of $110,000,direct materials of $170,000,and fixed factory overhead of $28,000 for 8,000 hours of production.The department actually completed 10,000 hours of production.What is the appropriate total budget for the department,assuming it uses flexible budgeting?

• A) $288,000
• B) $305,000
• C) $350,000
• D) $378,000

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Definitions:

National Income

The total amount of money earned within a country from production and services over a specific time period.

Opportunity Cost

Dismissing potential benefits from other possible choices by focusing on one.

Scarce Resources

Natural or human resources that are limited in supply and cannot fulfill all wants and needs due to their finite availability.

Free Lunch

An idiom expressing the idea that it is impossible to get something for nothing; in economics, it refers to the impossibility of getting a benefit without a cost.