At a sales volume of 60 units, budgeted direct materials will be ______.

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Multiple Choice

At a sales volume of 60 units, budgeted direct materials will be ______.

Explanation:
Direct materials budget shows how much material is needed to support planned production, so you multiply the materials required per unit by the number of units you intend to produce. If 60 units are planned and each unit requires 1.8 units of direct material, you need 60 × 1.8 = 108 units of material. The other numbers would come from using different material-per-unit requirements.

Direct materials budget shows how much material is needed to support planned production, so you multiply the materials required per unit by the number of units you intend to produce. If 60 units are planned and each unit requires 1.8 units of direct material, you need 60 × 1.8 = 108 units of material. The other numbers would come from using different material-per-unit requirements.

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