Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Marguerite Inc.. expects to sell 20,000 pool cues for $20.00 each. Direct materials costs are $2.00, direct manufacturing labour is $12.00, and manufacturing overhead is $0.80 per pool cue. Each pool cue requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.. Each pool cue requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2012:

-How many pool cues need to be produced in 2012?

A) 22,500 cues
B) 18,000 cues
C) 20,000 cues
D) 19,500 cues
E) 20,500 cues

Correct Answer:

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