LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.8 hours of direct labor at the rate of $17.00 per direct labor-hour.
The company plans to sell 31,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 530 and 110 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)
Solution
Budgeted direct labor cost will be the labor cost that is required to produce budgeted units.
No. of units to be produced = Units to be sold + Ending balance of finished goods
.
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LHU Corporation makes and sells a product called Product WZ- Each unit (1).docx
1. LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ
requires 3.8 hours of direct labor at the rate of $17.00 per direct labor-hour.
The company plans to sell 31,000 units of Product WZ in June. The finished goods inventories
on June 1 and June 30 are budgeted to be 530 and 110 units, respectively. Budgeted direct labor
costs for June would be: (Do not round intermediate calculations.)
LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ
requires 3.8 hours of direct labor at the rate of $17.00 per direct labor-hour.
The company plans to sell 31,000 units of Product WZ in June. The finished goods inventories
on June 1 and June 30 are budgeted to be 530 and 110 units, respectively. Budgeted direct labor
costs for June would be: (Do not round intermediate calculations.)
Solution
Budgeted direct labor cost will be the labor cost that is required to produce budgeted units.
No. of units to be produced = Units to be sold + Ending balance of finished goods
