Bondy Corporation makes widgets. The following are needed to make 1 widget:
The cost of wood is 30 cents per board foot, the cost of paint is $4 per gallon, and employees are paid $12 per hour. Also, variable manufacturing overhead is applied at the rate of $6 per direct labor hour. Given this information, the total direct materials cost of making 150 widgets is:
A) $900
B) $1,800
C) $2,700
D) $7,200
Correct Answer:
Verified
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