Total Direct Material Cost

Easyestimatingdirect cost
A project uses 500 m3 of material at $25 per m3. What is the total direct material cost?
  1. A$2,000
  2. B$10,000
  3. C$12,500
  4. D$25,000
Show solution

Answer: C. $12,500

Direct material cost = quantity × unit price = 500 × $25 = $12,500.
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