value 2.00 points LFM Corporation makes and sells a product called Product WZ. E

Question

value 2.00 points LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.7 hours of direct labor at the rate of $16.00 per direct labor-hour. Management would lke you to prepare a Direct Labor Budget for June. The company plans to sell 32,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 540 and 120 units, respectively. Budgeted direct labor costs for June would be: Do not round Intermediate calculations) $504,500 O $1,907,036 O $1.888.286 O $1.869,536

Explanation / Answer

Budgeted labor cost/unit=(3.7hours@$16/hour)=$59.2/unit

Hence budgeted labor cost for June=(59.2*31580)

=$1869536.

Beginning inventory 540 Add:production(balance)(32000+120-540) 31580 units. Less:ending inventory (120) Sales 32000

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