20. Ceiling Fans by Ike's overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increases in direct labor hours. The 2010 expected production is 1,200,000 units. What will be the value for factory supervision in the 2010 overhead budget? a. $570,000 b. $270,000 c. $450,000 d. $400,000 Show all workings please

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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20. Ceiling Fans by Ike's overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities
costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000
units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit
required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are
expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision
increases by increments of $30,000 for every 200,000 increases in direct labor hours. The 2010 expected
production is 1,200,000 units. What will be the value for factory supervision in the 2010 overhead
budget? a. $570,000 b. $270,000 c. $450,000 d. $400,000
Show all workings please
Transcribed Image Text:20. Ceiling Fans by Ike's overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increases in direct labor hours. The 2010 expected production is 1,200,000 units. What will be the value for factory supervision in the 2010 overhead budget? a. $570,000 b. $270,000 c. $450,000 d. $400,000 Show all workings please
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