Women\'s Fas X Ac00gg Conn of× C | ezto.mheducation.com/hm.tpx ACCOUNTING ter 8

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Women's Fas X Ac00gg Conn of× C | ezto.mheducation.com/hm.tpx ACCOUNTING ter 8 Quiz Question 4 (of 6) value: 33.33 points LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $14.00 per direct labor-hour The company plans to sell 34,000 units of Product WZ in June. The finished goods Inventories on June 1 and June 30 are budgeted to be 560 and 140 units, respectively. Budgeted direct labor costs for June would be: Do not round intermediate calculations) O $1645.420 O $1,664170 O $468,500 O $1682.920 MacBook A

Explanation / Answer

1.

Budgeted direct labor cost for June will be calculated as follows:

Budgeted direct labor cost for June is $1,645,420.

Budgeted units to be sold in June 34000 Add: Budgeted finished goods inventory on June 30 140 Total units required 34140 Less: Budgeted finished goods inventory on June 1 560 Budgeted number of units to be manufactured 33580 Direct labor hours required per unit 3.5 Total direct labor hours required (33,580 x 3.5) 117530 Direct labor cost per hour 14 Budgeted direct labor cost (117,530 x $14) 1645420

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