Question
A soda bottling Company wants to create a direct materials budget. It has determined that it needs to produce 950,000 cans of soda. The standard
A soda bottling Company wants to create a direct materials budget. It has determined that it needs to produce 950,000 cans of soda. The standard direct material cost is estimated at $0.12 per can. This does not include the cost of the box that is used for packaging. These boxes are purchased at a cost of $1.25 per hundred. Furthermore, the company estimates that machine lubricants, when allocated to the product, break down to $0.03 per unit. The production budget will include a total direct material cost of
A $154,375.
B $142,500.
C $125,875.
D $114,000.
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