LFM Corporation makes and sells a product called Product WZ. Each unit of Produc

Question

LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.4 hours of direct labor at the rate of $30.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 35,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 570 and 150 units, respectively. The budgeted direct labor cost per unit of Product WZ would be: (Do not round intermediate calculations.)

$3,527,160

$3,545,910

$1,042,500

$3,564,660

LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.4 hours of direct labor at the rate of $30.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 35,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 570 and 150 units, respectively. The budgeted direct labor cost per unit of Product WZ would be: (Do not round intermediate calculations.)

Explanation / Answer

$3,527,160 Statement showing Labour Budget Particulars Amount Opening Stock                570.00 Closing stock                150.00 Sales          35,000.00 Production (Sales+CS-OS)(35000+150-570)          34,580.00 Labour hours per unit                     3.40 Total Hours reqd for prod'n        117,572.00 Rate per Direct Labour hour                   30.00 Budgeted Labour cost    3,527,160.00

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