Evaluate budgeted direct labor costs for June?
LFM 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 $16.00 per direct labor hour. Management would like you to prepare a Direct Labor Budget for June.
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 100 and 600 units, respectively. Budgeted direct labor costs for June would be:
a) 1764000
b) 504000
c) 1708000
d) 1736000
e) none of the above