LFM Corporation makes and sells a product called Product WZ. Each unit of Produc

Question

LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4 hours of direct labor at the rate of $19.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 29,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 510 and 90 units, respectively. Budgeted direct labor costs for June would be:(Do not round intermediate calculations.)

rev: 11_19_2015_QC_CS-32026

$2,209,580

$543,500

$2,172,080

$2,190,830

LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4 hours of direct labor at the rate of $19.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 29,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 510 and 90 units, respectively. Budgeted direct labor costs for June would be:(Do not round intermediate calculations.)

Explanation / Answer

$2,172,080 Statement showing computations Particulars Amount Finished inventory                  90.00 Units sold          29,000.00 Total inventory available for sale = 90 + 29,000          29,090.00 Beginning Inventory                510.00 Inventory produced = 29090 - 510          28,580.00 Time required = 28,580 *4 or DL hours reqd        114,320.00 Direct Labour Cost = 114,320 *19    2,172,080.00

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