Solution-What is the budgeted direct labor cost for the

What is the budgeted direct labor cost for the month of june

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Reference no: EM132693785

A Corporation has the following budgeted production for four months

April- 50,000

May- 40,000

June- 45,000

July- 60,000

Each unit of product requires 2 pieces of raw materials. The desired ending raw materials inventory for each month is 130% of the following month's production needs, plus 2,000 pieces. (The April1 inventory meets the requirement).

The product is processed in two departments (Dept A and Dept B) and the direct labor standards are as follows:

Department A- Hours per Unit 6, Rate per Hours P30, Labor cost per unit P180

Department B- Hours per Unit 2, Rate per Hours P40, Labor cost per unit P80

Problem 1: What is the budgeted direct labor cost for the month of June?

a.51,000

b. 84,000

c. 129,000

d. 120,000

Reference no: EM132693785

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What is the budgeted direct labor cost for the month of june

Reference no: EM132693785

Reference no: EM132693785

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