Question

The LFH corporation makes and sells a single product, product t. each unit of product t requires 1.5 direct labor-hours at a rate of 10.50 per direct labor hour the company has budgeted to produce 28,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units, respectively. Budgeted direct labor costs for June would be:_____.
a. $294,000.
b. $441,000.
c. $444,150.
d. $437,850.

Answer 1

Answer:

b. $441,000

Explanation:

Calculation for Budgeted direct labor cost

Using this formula

Budgeted direct labor cost= Budgeted production * hours per unit * rate per hour

Let plug in the formula

Budgeted direct labor cost= 28,000 * 1.5 * 10.50

Budgeted direct labor cost= 441,000

Therefore the Budgeted direct labor costs for June would be 441,000