Marburg Co $\begin{array}{llcc} \underline{ \text { \quad\quad Standard }}&\underline{ \text { \quad\quad\quad Budgeted } }\end{array}$

question 82

Short Answer

Marburg Co.expects direct materials cost of $6 per unit for 100000 units (a total of $600000 of direct materials costs).Marburg's standard direct materials cost and budgeted direct materials cost is
$\begin{array}{llcc} \underline{ \text { \quad\quad Standard }}&\underline{ \text { \quad\quad\quad Budgeted } }\end{array}$
a. $\begin{array}{llcc} \text { \( \$ 6 \) per unit } &\text {\quad\quad \( \$ 600,000 \) per year } \end{array}$

b. $\begin{array}{llcc} \text { \( \$ 6 \) per unit } & \text { \quad\quad\( \$ 6 \) per unit } \end{array}$

c. $\begin{array}{llcc} \text {\( \$ 600,000 \) per year } & \text { \( \$ 6 \) per unit } \end{array}$

d. $\begin{array}{llcc} \text {\( \$ 600,000 \) per year } & \text { \( \$ 600,000 \) per year } \end{array}$

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Definitions:

Product Development

The comprehensive process of bringing a new product or service to market, from idea generation to commercialization.

Nondurable Good

A product that is consumed or has a lifespan significantly shorter than three years, such as food products, fuel, or cleaning supplies.

Durable Goods

Consumer products with a long life span, such as appliances, vehicles, and furniture, which are used over time rather than consumed quickly.

Nondurable Goods

Items that have a short lifespan and are consumed or used up quickly after purchase, such as food and paper products.