Campbell, Inc -Refer to the Figure

Campbell, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Campbell had the following budgeted data:
$\begin{array}{llr} \text { Budgeted variable costs per unit } &\\ \text {Direct materials } &\$7.00\\ \text {Direct labour } &10.00\\ \text { Supplies } &1.00\\ \text { Indirect labour } &0.50\\ \text { Power } &0.05\\\end{array}$


$\begin{array}{l}\text { Budgeted fixed overhead for } 2011 \\\text { Supervision } & \$ 4,000 \\\text { Depreciation } & 3,000 \\\text { Rent } & 2000\end{array}$
-Refer to the figure.What are the budgeted costs for materials if 5,000 units were produced?

A) $4,000
B) $9,000
C) $35,000
D) $50,000

Correct Answer:

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