ATR Corporation's Budgeted Product Costs for the Third Quarter of 20x2

question 2

Multiple Choice

ATR Corporation's budgeted product costs for the third quarter of 20x2 were based on an expected volume of 1,500 units. The budgeted unit costs appear below: Direct material $ 1.50
Direct labour 2.25
Variable overhead 4.25
Fixed overhead 3.00
Total $11.00
If ATR had a budgeted volume of 2,000 units, the total budgeted product cost for the third quarter of 20x2 would have been:

• A)$22,000
• B)$16,000
• C)$20,500
• D)None of the above

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Definitions:

Low Affiliation

A term indicating a reduced concern or need for forming close or supportive relationships with others.

Need for Achievement

A psychological trait that drives individuals to pursue and meet goals or standards of excellence, often motivating behavior in competitive environments.

Moderately Difficult Goals

Targets set for individuals or teams that are challenging yet achievable with effort, often optimizing motivation and performance.

Alderfer's ERG Theory

A motivational theory that categorizes human needs into three groups: existential, relatedness, and growth needs, suggesting that when higher level needs are frustrated, individuals will revert to lower level needs.