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Donaldson Manufacturing Company's production budget requires the following units for the upcoming year:
1st quarter 4,000 units
2nd quarter 3,500 units
3rd quarter 3,000 units
4th quarter 5,000 units
Question 1: Each unit requires two kilograms of material. The material cost is $1.50 per kilogram. Donaldson intends to have beginning inventory equal to 10% of the current quarter's material needs. Budgeted direct material usage costs for the second quarter would be:
Option 1: $4,650
Option 2: $5,100
Option 3: $10,650
Option 4: $10,350
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