Seaworthy Designs manufactures special metallic materials and decorative fittings for luxury yachts that require highlyskilled labor. Seaworthy uses standard costs to prepare its flexible budget. For the first quarter of the year, directmaterials and direct labor standards for one of their popular products were as follows:Direct materials: 4 pounds per unit; $6 per poundDirect labor. 2 hours per unit; $17 per hourDuring the first quarter, Seaworthy produced 4,000 units of this product. Actual direct materials and direct labor costswere $67,000 and $329,000, respectivelyFor the purpose of preparing the flexible budget, what is the total standard direct labor cost at a production volume of4,000 units?OA. $136,000OB. $68,000OC. $67,000OD. $329,000

Flexible Budget for variable cost is calculated by multiplying budgeted variable cost per activity…

Answered: Seaworthy Designs manufactures special…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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