Ceiling Fans by Ike\'s overhead budget for 2009 was as follows: Factory supervis

Question

Ceiling Fans by Ike's overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increase in direct labor hours. The 2010 expected production is 1,200,000 units.If the expected 2010 expense for factory supervision and for utilities costs is $500,000 and $250,000, respectively, then the total for the 2010 overhead budget is Answer a. $800,000. b. $750,000. c. $900,000. d. $650,000. Ceiling Fans by Ike's overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increase in direct labor hours. The 2010 expected production is 1,200,000 units.If the expected 2010 expense for factory supervision and for utilities costs is $500,000 and $250,000, respectively, then the total for the 2010 overhead budget is Ceiling Fans by Ike's overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increase in direct labor hours. The 2010 expected production is 1,200,000 units.If the expected 2010 expense for factory supervision and for utilities costs is $500,000 and $250,000, respectively, then the total for the 2010 overhead budget is $300,000 150,000 28,000 22,000 100,000 $600,000 $800,000. $750,000. $900,000. $650,000. Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000

Explanation / Answer

Answer is C

Factory supervision $500,000 Utilities costs 250,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $900,000

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