The Magnolia Company Has Budgeted for Sales of 150 000

question 52

Multiple Choice

The Magnolia Company has budgeted for sales of 150 000 units of its product for the year. Expected unit costs, based on past experience, should be $18 for direct materials, $15 for direct labour and $20 for manufacturing overhead. Assume no beginning and ending work in process inventories. The Magnolia Company begins the year with 30 000 finished units on hand and budgets the ending finished goods inventory at 20 000 units. Compute the budgeted production in units and dollars.

• A) 140 000 units @ $33 = $4 620 000
• B) 140 000 units @ $53 = $7 420 000
• C) 150 000 units @ $33 = $4 950 000
• D) 150 000 units @ $53 = $7 950 000

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Definitions:

Intelligence

The ability to learn, understand, and apply knowledge, to reason and solve problems, and to adapt to new situations.

Weight

A measure of the mass of an object or individual, often used in a health context to discuss body mass and its implications for well-being.

Niche-picking

The process by which individuals select environments or experiences that complement their inherited tendencies or skills.

Genetic Tendencies

Inclinations or predispositions for certain traits or behaviors influenced by genes.