Global Products Produces and Sells Limited Edition Decorative Plates

Multiple Choice

Global Products produces and sells limited edition decorative plates. 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 1,900 units and actual direct materials cost was $4,940.
If the company prepares a flexible budget for April, the projected direct materials cost would be:

A) $5,200
B) $4,940
C) $5,000
D) $4,750