erto mheducation.com/hm tpx Introduction to Managerial Accounting: Spring Hugo R

Question

erto mheducation.com/hm tpx Introduction to Managerial Accounting: Spring Hugo Riva e ACCT 2302.90L Question 3 (of 35) Jaybird Inc. produces leather handbags. The sales budget for the next four months is: July 5000 units, August 7000, September 7.500. October 8.000 Jaybird lInc.s ending finished goods m tory policy s l %of the follow ng n t ssa es Each handbeg itquires 13 hours of unsk led labor id sa per hour) end 22 hours of skled labor ped $15 per hun what will be th total labor cost for the month of August? O $24,675 O $305,970 O $225.680 O $303.800o a218 142 PM ype here to search

Explanation / Answer

Answer is B; $305,970

Budgeted sales           7,000 Add: Ending finished goods inventory (7,500*10%)              750 Less: Beginning finished goods inventory (7,000*10%)              700 Budgeted production           7,050 Unskilled labour hours required (7,050*1.3)           9,165 Hourly rate per Unskilled labour $               8 Total labour cost for Unskilled labours (9,165*$8) $    73,320 Skilled labour hours required (7,050*2.2)        15,510 Hourly rate per Skilled labour $            15 Total labour cost for Skilled labours (9,165*$15) $ 232,650 Total labour cost ($232,650+$73,320) $ 305,970

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