12.00 points MC Qu. 112 LFM Corporation makes and sells. LFM Corporation makes a

Question

12.00 points MC Qu. 112 LFM Corporation makes and sells. LFM Corporation makes and sells a product called Product WZ. Each onit of Product WZ requires 44 hours of direct labor at the rate of $15,00 per direct labor-hour. Management would ike you to prepare a Direct Labor Budget for June The company plans to sell 25,000 units of Product WZ in June The finished goods inventories on June 1 and June 30 are budgeted to be 470 and 50 units, respectively Budgesed direct labor costs for June would be Do not round intermediale calculations) O $1641.030 O $367,500 O $1.659,780 O $1622280 Relerences Multiple Choice

Explanation / Answer

D. $1,622,280

Direct labor budget

June Budgeted unit sales 25,000 Add desired ending finished goods inventory 50 Total needs 25,050 Less beginning finished goods inventory 470 Required production in units 24,580 Direct labor-hours per unit 4.4 Total direct labor-hours needed 108,152 Direct labor cost per hour $15.00 Budgeted direct labor costs for june $1,622,280

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