Dixon & Company manufactures Part A and uses standard costs to prepare its flexible budget. For the first quarter of the year, direct material and direct labor standards for Part A were as follows: Direct materials: 5 pounds per unit; $4 per pound Direct labor: 3 hours per unit; $18 per hour During the first quarter, Dixon produced 4,000 units of this product. Actual direct materials and direct labor costs were $61,000 and $260,000 respectively. For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 4,000 units. A. $20,000 ○ B. $288,000 C. $80,000 D. $16,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dixon & Company manufactures Part A and uses standard costs to prepare its flexible budget. For the first quarter of the year, direct material
and direct labor standards for Part A were as follows:
Direct materials: 5 pounds per unit; $4 per pound
Direct labor: 3 hours per unit; $18 per hour
During the first quarter, Dixon produced 4,000 units of this product. Actual direct materials and direct labor costs were $61,000 and $260,000
respectively.
For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 4,000 units.
A. $20,000
○ B. $288,000
C. $80,000
D. $16,000
Transcribed Image Text:Dixon & Company manufactures Part A and uses standard costs to prepare its flexible budget. For the first quarter of the year, direct material and direct labor standards for Part A were as follows: Direct materials: 5 pounds per unit; $4 per pound Direct labor: 3 hours per unit; $18 per hour During the first quarter, Dixon produced 4,000 units of this product. Actual direct materials and direct labor costs were $61,000 and $260,000 respectively. For the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 4,000 units. A. $20,000 ○ B. $288,000 C. $80,000 D. $16,000
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