Lynyrd Skynyrd Company makes and sells a product called Product LS. Each unit of
ID: 2512617 • Letter: L
Question
Lynyrd Skynyrd Company makes and sells a product called Product LS. Each unit of Product LS requires 4.3 hours of direct labor at the rate of $22.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
The company plans to sell 26,000 units of Product LS in June. The finished goods inventories on June 1 and June 30 are budgeted to be 480 and 60 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)
rev: 11_19_2015_QC_CS-32026
$2,457,368
$2,419,868
$564,500
$2,438,618
Lynyrd Skynyrd Company makes and sells a product called Product LS. Each unit of Product LS requires 4.3 hours of direct labor at the rate of $22.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
The company plans to sell 26,000 units of Product LS in June. The finished goods inventories on June 1 and June 30 are budgeted to be 480 and 60 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)
Explanation / Answer
Calculate budgeted direct labour cost for june :
Production units in june = Sales units+Desired ending inventory-Beginning inventory
= 26000+60+-480
Production units in june = 25580 units
Budgeted direct labour cost for june = 25580*4.3*22 =2419868
so answer is b) 2419868
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