Question: The Plane Shop makes simple model planes that can be finished and detailed by the customer. The company uses standard costs to create the direct
The Plane Shop makes simple model planes that can be finished and detailed by the customer. The company uses standard costs to create the direct materials budget for the upcoming year. The list of materials required to make one plane is shown below. How much is the total direct materials budget if the company plans to make 100,000 planes next year?
| Input Unit | # Required per Plane | Cost per Input Unit |
| A | 1 | $3.50 |
| B | 4 | $0.75 |
| C | 4 | $0.50 |
| D | 2 | $2.00 |
A) $850,000
B) $1,250,000
C) $1,300,000
D) $1,050,000
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