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Ceiling Fans by Ike's Overhead Budget for 2009 Was as Follows

Question 40

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Ceiling Fans by Ike's overhead budget for 2009 was as follows: Ceiling Fans by Ike's overhead budget for 2009 was as follows:   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 increase in direct labor hours. The 2010 expected production is 1,200,000 units. What will be the value for utilities costs in the 2010 overhead budget? A)  $420,000 B)  $150,000 C)  $300,000 D)  $450,000 600,000 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 increase in direct labor hours.
The 2010 expected production is 1,200,000 units.
What will be the value for utilities costs in the 2010 overhead budget?


A) $420,000
B) $150,000
C) $300,000
D) $450,000

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