Question

Cullumber Products plans to produce 10200 units in January. Each unit requires 6 pounds of plastic, which costs $5 per pound. What standard material cost would the company use to plan for production?

Answer 1

Standard direct material cost= $306,000

Step-by-step 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.

First, we need to calculate the standard pounds needed:

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

Now, the standard cost:

Standard direct material cost= 61,200*5

Standard direct material cost= $306,000