Jaybird Incorporated produces leather handbags. The sales budget for the next fo

Question

Jaybird Incorporated produces leather handbags. The sales budget for the next four months is.....

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my.utrgv.edu | Home X Exam II C ezto.mheducation Seorch Visited my.utrgv.edu ALGEBRA LoginSearch onnect ACCOUNTING instructions I help Question 33 (of 35) Save & Ext Submit Time remaining: 105:29 Jaybird Inc. produces leather handbags. The sales budget for the next four months is: July 5,500 units, August 7400, September 8.200, October 8.200 Jaybird Inc's ending finished goods riventory policy is 10% of the following month's sales. Each handbag requires 19 hours of unskilled labor (paid $10 per hourn and 22 hours of skiled labor (paid $20 per hour). What will be the total labor cost for the month of August? O $471.240 O $469,070 O $390,950 O s30,668

Explanation / Answer

Solution:

Therefore first option is correct.

Jaybird Inc. Computation of Budgeted direct labor cost for August Particulars August Budgeted sales units 7400 Desired ending inventory (10% of 8200) 820 Beginning inventory 740 Budgeted production units 7480 hours per unit of unskilled labor 1.9 hours per unit of skilled labor 2.2 Required hours of unskilled labor 14212 Required hours of skilled labor 16456 Hourly rate of unskilled labor $10.00 Hourly rate of skilled labor $20.00 Budgeted cost of unskilled labor $142,120.00 Budgeted cost of skilled labor $329,120.00 Total budgeted direct labor cost $471,240.00

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