Horton Company produces and sells two products: round and square tables. In August 20x0, the budget projected the following for 20x1:
The tables are manufactured using the following direct materials:

Budgeted data for 20x1 direct materials are:

Budgeted data for 20x1 Direct labour and overhead are:

Total budgeted production of tables in 20x1 is:
A)12,000 units
B)10,000 units
C)6,500 units
D)14,000 units

Question

Horton Company produces and sells two products: round and square tables. In August 20x0, the budget projected the following for 20x1: 
The tables are manufactured using the following direct materials:

Budgeted data for 20x1 direct materials are:

Budgeted data for 20x1 Direct labour and overhead are:

Total budgeted production of tables in 20x1 is:
A)12,000 units 
B)10,000 units 
C)6,500 units 
D)14,000 units

Quizplus · Accepted Answer

To determine the total budgeted production of tables in 20x1, we need to calculate the total units of round and square tables that are budgeted to be produced and then add them together.

From the budgeted data, we know that the following number of tables are budgeted to be produced in 20x1:

Round Tables: 8,000 
Square Tables: 4,000

Therefore, the total budgeted production of tables in 20x1 is:

8,000 + 4,000 = 12,000 units

Hence, the correct choice is A) 12,000 units.

Horton Company Produces and Sells Two Products: Round and Square