Colorado Springs Ltd

Multiple Choice

Colorado Springs Ltd. produces and sells bottled water. The company's controller has the following information available from the static budget of one of the product lines for the month of April: Actual production during April was 18,000 units and actual direct materials cost was $6,300.
If the company prepares a flexible budget for April, the projected direct materials cost would be:

A) $7,000
B) $6,300
C) $5,400
D) $6,000