Multiple Choice
Seaworthy Designs manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor.Seaworthy 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: 4 pounds per unit; $6 per pound
Direct labor: 4 hours per unit; $17 per hour
During the first quarter,Seaworthy produced 4000 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,what is the total standard direct labor cost at a production volume of 4000 units?
A) $68,000
B) $66,000
C) $272,000
D) $328,000
Correct Answer:
Verified
Correct Answer:
Verified
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