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algol [13]
3 years ago
11

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.2 hours of direct labor at the r

ate of $21.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 27,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 490 and 70 units, respectively. Budgeted direct labor costs for June would be: Multiple Choice $559,500 $2,344,356 $2,363,106 $2,381,856
Business
1 answer:
irina1246 [14]3 years ago
3 0

Answer:

$2,344,356

Explanation:

Given the above information,

June production :

Planned sales + ending inventory - beginning inventory

= (27,000 + 70 - 490) units

= 26,580 units

Total direct labor hour required for production

= 26,580 units × 4.2

= 111,636 labor hour

Cost of production

= Total direct labor hour × rate per hour

= 111,636 × $21

= $2,344,356

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