Rammazzotti, Inc $\begin{array}{ll}\text { Unit sales for } 2018 & 26,000 \\\text { Unit production for } 2018 & 26,000\end{array}$

Multiple Choice

Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Rammazzotti Inc., had the following budgeted data: $\begin{array}{ll}\text { Unit sales for } 2018 & 26,000 \\\text { Unit production for } 2018 & 26,000\end{array}$
$\begin{array}{l}\text { Budgeted fixed overhead for } 2018 \text { : }\\\begin{array}{lr}\text { Supervision } & \$ 800 \\\text { Depreciation } & 2,000 \\\text { Rent } & 100\end{array}\end{array}$
$\begin{array}{lr}\text { Budgeted variable costs per unit: } & \\\text { Direct materials } & \$ 0.15 \\\text { Direct labor } & 0.20 \\\text { Supplies } & 0.02 \\\text { Indirect labor } & 0.05 \\\text { Power } & 0.02\end{array}$
$\text { The following actually occurred: }$
$\begin{array}{ll}\text { Actual unit sales for } 2018 & 24,000 \\\text { Actual unit production for } 2018 & 28,000\end{array}$

$\begin{array}{l}\text { Actual fixed overhead for } 2018 \text { : }\\\begin{array}{lr}\text { Supervision } & \$ 850 \\\text { Depreciation } & 2,000 \\\text { Rent } & 100\end{array}\end{array}$

$\begin{array}{lr}\text { Actual variable costs: } & \\\text { Direct materials } & \$ 3,500 \\\text { Direct labor } & 4,900 \\\text { Supplies } & 530 \\\text { Indirect labor } & 1,250 \\\text { Power } & 470\end{array}$
The actual cost for direct materials for 2018 was

A) $3,600.
B) $3,900.
C) $4,500.
D) $3,500.