Units produced 12 000 15 000
Direct materials $36 000 $45 000
Based on the above data, the direct material costs for producing 7000 units are $21 000.

Name: Units produced 12 000 15 000 Direct materials $36 000 $45 000 Based on the above data, the direct material costs for producing 7000 units are $21 000.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

The direct material cost per unit is $3 ($36,000/12,000 units). Therefore, for 7,000 units, the cost is $21,000 (7,000 units x $3/unit).

Units Produced 12 000 15 000