Emerald Marine Stores Company manufactures special metallic materials and decora

Question

Emerald Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Emerald uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 5 pounds per unit: $6 per pound Direct labor: 2 hours per unit: $19 per hour During the first quarter. Emerald produced 1,000 units of this product. Actual direct materials and direct labor costs were $66,000 and $328,000, respectively. For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 1,000 units. $30,000 $6,000 $66,000 $5,000

Explanation / Answer

A.$30,000.

1,000*5*$6=$30,000.

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