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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:
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: 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 the current year: Supervision $4,000 Depreciation 3,000 Rent 2,000 What are the budgeted costs for materials if 5,000 units were produced? a. $50,000 b. $9,000 c. $4,000 d. $35,000
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