es Company manufactures special metalic materials and decoralive inings for hasu

Question

es Company manufactures special metalic materials and decoralive inings for hasury yachts that require highly skd laquatic ses standard costs to propareo Resable budget For h year, direct materials and direct labor standards for one of their popular products were as follows Direct materials: 5 pounds per unit, 56 per pound Direct labor 2 hours per unit, $16 per hour During the first quarter, Aquatic produced 2,000 units of this product Actual direct materials and direct labor costs were $65,000 and $331,000, espectively For the purpose of preparing the lexible budget calculate the total standard direct materials cost at a production volume of 2,000 units O A. $65.000 ? B. $10000 OC. S60.000 O D. $12.000 Click to select your answer 8 5 6

Explanation / Answer

Calculate standard direct material cost on 2000 units :

Direct material cost = (2000*5*6) = 60000

so answer is c) $60,000

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