Horton Company produces and sells two products: round and square tables. In August 20x4, the budget projected the following for 20x5: Budgeted data for 20x5 direct labour and overhead are:
Direct labour:
Round 4 hours per unit at $6 per hour
Square 6 hours per unit at $8 per hour
Overhead: $4 per direct labour hour
Total budgeted production of tables in 20x5 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 20x4, the budget projected the following for 20x5:  Budgeted data for 20x5 direct labour and overhead are:
Direct labour:
Round 4 hours per unit at $6 per hour
Square 6 hours per unit at $8 per hour
Overhead: $4 per direct labour hour
Total budgeted production of tables in 20x5 is:
A) 12,000 units 
B) 10,000 units 
C) 6,500 units 
D) 14,000 units

Quizplus · Accepted Answer

The Answer of Horton Company produces and sells two products: round and square tables. In August 20x4, the budget projected the following for 20x5:  Budgeted data for 20x5 direct labour and overhead are:
Direct labour:
Round 4 hours per unit at $6 per hour
Square 6 hours per unit at $8 per hour
Overhead: $4 per direct labour hour
Total budgeted production of tables in 20x5 is:
A) 12,000 units 
B) 10,000 units 
C) 6,500 units 
D) 14,000 units

Horton Company Produces and Sells Two Products: Round and Square