Business, 18.04.2020 02:22 clarissajimenez27

Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly
production of bicycles for the first three months of the year:
January 12,000
February 15,000
March 13,000
Ikon budgets for 4 direct labor hours per bicycle, at an average cost of $17.00 per hour. Variable factory overhead is applied at the rate of $11.00 per direct labor hour. Fixed overhead is expected to run $120,000 per month, which includes $11,000 per month of noncash expenses related to depreciation.

Determine the total expected monthly cash outflow for labor and overhead.
A. January Expected cash outflow 1,298,000
February Expected cash outflow 1,585,000
March Expected cash outflow 1,399,000

B. January Expected cash outflow 1,453,000
February Expected cash outflow 1,789,000
March Expected cash outflow 1,565,000

C. January Expected cash outflow 1,212,000
February Expected cash outflow 1,450,000
March Expected cash outflow 1,354,000

D. January Expected cash outflow 1,489,000
February Expected cash outflow 1,780,000
March Expected cash outflow 1,550,000

E. January Expected cash outflow 1,356,000
February Expected cash outflow 1,534,000
March Expected cash outflow 1,896,000

Answers: 3

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Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly
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