Reference no: EM132543670

Question - Johnson Company manufactures tee shirts. This year, the company expects to sell 12,000 tee shirts for $30 each. Two yards of direct material are required per tee shirt. Costs per tee shirt are $6 for direct material, $12 for direct labor, and $3 for manufacturing overhead. During the year, direct material inventory will increase by 200 yards, and finished goods inventory will decline by 300 tee shirts. There is no work-in-process inventory at the beginning or end of the year.

Calculate the budgeted production costs for direct materials purchased, direct manufacturing labor, and manufacturing overhead, respectively.

a. $70,200; $140,400; $36,000

b. $72,000; $144,000; $36,000

c. $70,800; $140,400; $35,100

d. $141,600; $144,000; $35,100