Delaware Corp. prepared a master budget that included $18,225 for direct materials, $28,800 for direct labor, $15,400 for variable overhead, and $39,300 for fixed overhead. Delaware Corp. planned to sell 4,050 units during the period, but actually sold 4,320 units. What would Delaware’s direct materials cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.)

$19,440

Explanation:

The computation of the direct material cost is shown below:

But before that first we have to determine the per unit which is given below

= Total direct material cost ÷ planned selling units

= $18,225 ÷ 4,050 units

= $4.5

And, the actually selling units is 4,320 units

So, the direct material cost is

= Per unit cost × actually selling units

= $4.5 × 4,320 units

= $19,440

We simply multiplied the per unit with the actually selling units so that the direct material cost could come

Possible Answers:

- There's always a right answer.

- It's logical

- You use it in the real world. (You really do).

- My teacher is good.

- My friends share the class with me. (Not recommended).

- I like to solve problems.

Explanation:

This seems like it's supposed to be a creative exercise, displaying your personal thoughts, so try to answer it yourself next time.