Emerald Corporation's overhead budget for 2013 was as follows: 750,000 units were produced in 2013.
Direct labor cost is $42,000,000.
For both 2013 and 2014,each unit required 4 direct labor hours at $14 per hour.
In 2014,property taxes,insurance,and depreciation are expected to stay at 2013 levels.
Utilities costs vary proportionally with units produced.
Factory supervision increases by increments of $45,000 for every 300,000 increase in direct labor hours.
The 2014 expected production is 1,200,000 units.
-What will be the value for factory supervision of Emerald in the 2014 overhead budget?
A)$720,000
B)$270,000
C)$450,000
D)$990,000

Question

Emerald Corporation's overhead budget for 2013 was as follows:  750,000 units were produced in 2013.
Direct labor cost is $42,000,000.
For both 2013 and 2014,each unit required 4 direct labor hours at $14 per hour.
In 2014,property taxes,insurance,and depreciation are expected to stay at 2013 levels.
Utilities costs vary proportionally with units produced.
Factory supervision increases by increments of $45,000 for every 300,000 increase in direct labor hours.
The 2014 expected production is 1,200,000 units.
-What will be the value for factory supervision of Emerald in the 2014 overhead budget?
A)$720,000 
B)$270,000 
C)$450,000 
D)$990,000

Quizplus · Accepted Answer

The value for factory supervision of Emerald in the 2014 overhead budget is $720,000.

Emerald Corporation's Overhead Budget for 2013 Was as Follows