Fantastic Futons Goes Through Two Departments in the Production Process

question 112

Multiple Choice

Fantastic Futons goes through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B. The budgeted overhead rate is $5 per direct labor hour. What is the budgeted overhead cost for January given a budgeted production of 30,000 units?

• A) $450,000
• B) $150,000
• C) $330,000
• D) $300,000

---

Definitions:

Math Instructions

Commands or operations in programming languages and software that execute mathematical calculations, such as addition, subtraction, multiplication, and division.

MUL Instruction

Refers to a command in programming that instructs the processor to perform a multiplication operation.

Bottles Produced

The total count of bottles manufactured in a given period or through a specific process, often used as a key performance indicator in production settings.

MOV Instruction

An instruction used in programming that moves data from one location to another within a device or between devices.