Fill in the Blank QuestionFill in the blank question.A company sells a product for $3. Direct materials are $1.80 per unit. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted direct materials will be $. At a sales volume of 60 units, budgeted direct materials will be $.
Question
Fill in the Blank QuestionFill in the blank question.A company sells a product for 1.80 per unit. The company prepares a flexible budget at two sales volumes. At a sales volume of 50 units, budgeted direct materials will be .
Solution
To calculate the budgeted direct materials, you need to multiply the cost per unit by the sales volume.
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For a sales volume of 50 units: 90. So, at a sales volume of 50 units, budgeted direct materials will be $90.
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For a sales volume of 60 units: 108. So, at a sales volume of 60 units, budgeted direct materials will be $108.
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Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7 pounds @ $2.35/pound) $ 16.45 per finished unitActual cost of materials purchased $ 392,150 Actual direct materials purchased and used 157,000 pounds
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