Question: Emerald, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Emerald has the following budgeted data:
Emerald, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Emerald has the following budgeted data:
| Budgeted variable costs per unit: | |
| Direct materials | $ 5.00 |
| Direct labor | 8.00 |
| Supplies | 2.00 |
| Indirect labor | 1.50 |
| Power | 0.02 |
| Budgeted fixed overhead for the current year: | |
| Supervision | $2,000 |
| Depreciation | 5,000 |
| Rent | 5,000 |
What are the total budgeted costs for 4,000 units?
a.$48,960
b.$78,080
c.$97,106
d.$56,250
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