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Fofino [41]
3 years ago
9

Delaware Corp. prepared a master budget that included $18,225 for direct materials, $28,800 for direct labor, $15,400 for variab

le overhead, and $39,300 for fixed overhead. Delaware Corp. planned to sell 4,050 units during the period, but actually sold 4,320 units. What would Delaware’s direct materials cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.)
Business
1 answer:
Brut [27]3 years ago
6 0

Answer:

$19,440

Explanation:

The computation of the direct material cost is shown below:

But before that first we have to determine the per unit which is given below

= Total direct material cost ÷ planned selling units

= $18,225 ÷ 4,050 units

= $4.5

And, the actually selling units is 4,320 units

So, the direct material cost is

= Per unit cost × actually selling units

= $4.5 × 4,320 units

= $19,440

We simply multiplied the per unit with the actually selling units so that the direct material cost could come

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