Question

Marburg Co. expects direct materials cost of $5 per unit for 100,000 units (a total of $500,000 of direct materials costs). Marburg's standard direct materials cost and budgeted direct materials cost is:

$5 per unit (Standard); $500,000 per year (Budgeted)
$5 per unit (Standard); $5 per unit (Budgeted)
$500,000 per year (Standard); $5 per unit (Budgeted)
$500,000 per year (Standard); $500,000 per year (Budgeted)

Answer 1

$5 per unit (Standard); $500,000 per year (Budgeted)

Step-by-step explanation:

Standard = $5 per unit

Budgeted = $5*100,000

= $500,000