Hoppe IncManufactures Widgets

Multiple Choice

Hoppe Inc.manufactures widgets.Management has determined that each widget has a standard materials cost of $3.50 when 2.5 grams of raw material at a cost of $1.40 per gram are used.The static budget for the month of December showed an estimated production of 4000 widgets in December.During December,4300 widgets were actually produced.The actual cost for each widget was $3.60 when 2.25 grams of raw material at a cost of $1.60 per gram were purchased and used.What should be the total direct materials cost according to Hoppe's flexible budget for December?

A) $14 400
B) $15 050
C) $14 000
D) $15 480