First Class, Inc., expects to sell 27,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $6, and manufacturing overhead is $0.87 per pool cue. The following inventory levels apply to 2020: Direct materials Work-in-process inventory Finished goods inventory Beginning inventory 29,000 units 0 units 1,900 units Ending inventory 29,000 units 0 units 2,500 units What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively? A) $87,000; $174,000; $25,230 B) $86,700; $173,400; $25,143 C) $82,800; $165,600; $24,012 D) $81,000; $162,000; $23,490

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
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First Class, Inc., expects to sell 27,000 pool cues for $13
each. Direct materials costs are $3, direct
manufacturing labor is $6, and manufacturing overhead is
$0.87 per pool cue. The following inventory
levels apply to 2020:
Direct materials
Work-in-process inventory
Finished goods inventory
Beginning inventory
29,000 units
0 units
1,900 units
Ending inventory
29,000 units
0 units
2,500 units
What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing
overhead, respectively?
A) $87,000; $174,000; $25,230
B) $86,700; $173,400; $25,143
C) $82,800; $165,600; $24,012
D) $81,000; $162,000; $23,490
Transcribed Image Text:First Class, Inc., expects to sell 27,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $6, and manufacturing overhead is $0.87 per pool cue. The following inventory levels apply to 2020: Direct materials Work-in-process inventory Finished goods inventory Beginning inventory 29,000 units 0 units 1,900 units Ending inventory 29,000 units 0 units 2,500 units What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively? A) $87,000; $174,000; $25,230 B) $86,700; $173,400; $25,143 C) $82,800; $165,600; $24,012 D) $81,000; $162,000; $23,490
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