Summer 20 Corp is setting its direct materials standard. The price from the supplier is $3.00 per gallon. Summer 20 Corp also has to pay $.50 per gallon in shipping costs. What is the direct materials standard cost per gallon?

		$2.50
		$3.00
		$3.50
		$.50

Summer 20 Corp would like you to calculate their direct labor standard cost per hour based on the following.

Basic assembly line personnel wage per hour					$13.00
Payroll tax as a percentage of the basic wage					20%
Benefits per hour paid by Summer					$3.00

		$15.60
		$16.00
		$18.60
		$13.00

The master budget typically begins with the

		cost of goods sold budget.
		production budget.
		budgeted income statement.
		sales budget.