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Nextel Company Showed the Following on Its Direct Materials Budget

Question 23

Multiple Choice

Nextel Company showed the following on its direct materials budget for June:  Units to be produced25,000 Total kilograms needed for production 10,000 Total kilograms of materials to be purchased 9,000\begin{array}{llcc} \text { Units to be produced} &25,000\\ \text { Total kilograms needed for production } &10,000\\ \text { Total kilograms of materials to be purchased }& 9,000\\\end{array}
The materials cost $2 per kilogram.How much is the cost of direct materials per unit?


A) $0.80
B) $0.72
C) $1.52
D) $5.00

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