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Iteru [2.4K]
3 years ago
14

Cullumber Products plans to produce 10200 units in January. Each unit requires 6 pounds of plastic, which costs $5 per pound. Wh

at standard material cost would the company use to plan for production?
Business
1 answer:
yKpoI14uk [10]3 years ago
3 0

Answer:

Standard direct material cost= $306,000

Explanation:

Giving the following information:

Cullumber Products plans to produce 10,200 units in January. Each unit requires 6 pounds of plastic, which costs $5 per pound.

<u>First, we need to calculate the standard pounds needed:</u>

Standard pounds of plastic= 10,200*6= 61,200 pounds

<u>Now, the standard cost:</u>

Standard direct material cost= 61,200*5

Standard direct material cost= $306,000

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