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Laramie, Inc  Laramie had the following budgeted data \text { Laramie had the following budgeted data }

Question 132

Multiple Choice

Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.  Laramie had the following budgeted data \text { Laramie had the following budgeted data }
 Budgeted variable costs per unit:  Direct materials $7.00 Direct labor 10.00 Supplies 1.00 Indirect labor 0.50 Power 0.05 Budgeted fixed overhead for 2018 :  Supervision $4,000 Depreciation 3,000 Rent 2,000\begin{array}{lr}\text { Budgeted variable costs per unit: } & \\\text { Direct materials } & \$ 7.00 \\\text { Direct labor } & 10.00 \\\text { Supplies } & 1.00 \\\text { Indirect labor } & 0.50 \\\text { Power } & 0.05\\\\\text { Budgeted fixed overhead for } 2018 \text { : }\\\text { Supervision } & \$ 4,000 \\\text { Depreciation } & 3,000 \\\text { Rent } & 2,000\end{array} What are the budgeted costs for rent if 5,000 units were produced?


A) $2,000
B) $100,000
C) $9,000
D) $45,000

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