Zariz Ltd Budgeted Product Costs for the Third Quarter of 2019

Zariz Ltd budgeted product costs for the third quarter of 2019 were based on an expected volume of 2,000 units. The budgeted unit costs appear below: $\begin{array}{lr}\text { Direct material } & \$ 1.50 \\\text { Direct labor } & 2.25 \\\text { Variable overhead } & 4.25 \\\text { Fixed overhead } & \underline{3.00} \\\quad \text { Total } & \underline{\$ 11.00} \\\end{array}$

If Zariz Ltd had a budgeted volume of 2,500 units, the total budgeted product cost for the third quarter of 2019 would have been

A) $26,000
B) $16,000
C) $20,500
D) None of the above

Correct Answer:

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