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Question
Kyle, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is:
| Direct materials standard (4 lbs. @ $1/lb.) | $4 per finished unit |
| Total direct materials cost varianceunfavorable | $13,750 |
| Actual direct materials used | 150,000 lbs. |
| Actual finished units produced | 30,000 units |
A. $133,750.
B. $150,000.
C. $106,250.
D. $158,750.
E. $120,000.
Answer
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Related questions
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Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
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