XYZ Company has budgeted production of Item #123 for April, May, and June of 2,400, 3,200, and 2,800 units, respectively.XYZ Company currently pays a standard rate of $3 per foot for raw material A and $5 per sheet for raw material B.Each unit produced requires 4 feet of raw material A and 2 sheets of raw material B.Each unit produced also requires 30 minutes of cutting direct labor time at a standard rate of $16 per hour and 2 hours of assembly direct labor time at a standard rate of $20 per hour.Manufacturing overhead is applied at the standard rate of $10 per direct labor hour. The total standard cost of May's budgeted production of Item #123 is:
A) $198,400.
B) $208,800.
C) $304,000.
D) $308,800.
Correct Answer:
Verified
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