Hills Company sells shoes and expects to produce and sell 50,000 units during the year 2022 with no beginning or ending inventories as it plans to produce what it can sell during the same year . The total budgeted fixed manufacturing overhead cost for the year is $50,000 . The company accounts show that the budgeted direct material cost is $ 4 per unit , budgeted direct labor cost is $ 6 per direct labor hour , and budgeted variable manufacturing overhead is $2 per direct labor hour . Each unit produced takes 2 hours of skilled labor time . The cost of goods sold reported in the budgeted income statement for 2022 is : a. None of the given answers b. $450,000 c . $650,000 d. $1,050,000 e. $850,000
Hills Company sells shoes and expects to produce and sell 50,000 units during the year 2022 with no beginning or ending inventories as it plans to produce what it can sell during the same year . The total budgeted fixed manufacturing overhead cost for the year is $50,000 . The company accounts show that the budgeted direct material cost is $ 4 per unit , budgeted direct labor cost is $ 6 per direct labor hour , and budgeted variable manufacturing overhead is $2 per direct labor hour . Each unit produced takes 2 hours of skilled labor time . The cost of goods sold reported in the budgeted income statement for 2022 is : a. None of the given answers b. $450,000 c . $650,000 d. $1,050,000 e. $850,000
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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Hills Company sells shoes and expects to produce and sell 50,000 units during the year 2022 with no beginning or ending inventories as it plans to produce what it can sell during the same year . The total budgeted fixed manufacturing overhead cost for the year is $50,000 . The company accounts show that the budgeted direct material cost is $ 4 per unit , budgeted direct labor cost is $ 6 per direct labor hour , and budgeted variable manufacturing overhead is $2 per direct labor hour . Each unit produced takes 2 hours of skilled labor time . The cost of goods sold reported in the budgeted income statement for 2022 is :
a. None of the given answers
b. $450,000
c . $650,000
d. $1,050,000
e. $850,000
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