Haskins Products sells 2,100 kayaks per year at a sales price of $450 per unit. Haskins sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $740,000 per year. Total variable costs are $330,000 per year and cannot be reduced. Assume all products produced are sold. What are the target fixed costs? A. $945,000 B. $330,000 C. $410,000 D. $205,000

Lewis Marine Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Lewis uses standard costs to prepare its flexible budget. For the first quarter of theyear, direct materials and direct labor standards for one of their popular products were as follows:

Direct materials: 4 pounds per unit; $6 per pound

Direct labor: 4 hours per unit; $17 per hour

During the first quarter, Lewis produced 4,000 units of this product. Actual direct materials and direct labor costs were $66,000 and $328,000, respectively.

For the purpose of preparing the flexible budget, what is the total standard direct labor cost at a production volume of 4,000 units?

A.

$66,000

B.

$272,000

C.

$68,000

D.

$328,000