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Multiple Choice Question 91 Swifty Corporation is planning to sell 600 buckets a

ID: 2544731 • Letter: M

Question

Multiple Choice Question 91 Swifty Corporation is planning to sell 600 buckets and produce 380 buckets during March. Each bucket requires 100 grams of plastic and one-half hour of direct labor. Plastic costs S10 per 100 grams and employees of the company are paid S13 per hour Manufacturing overhead is applied at a rate of 110% of direct labor costs. Swifty has 1100 kilos of plastic in beginning inventory and wants to have 700 kilos in ending inventory. How much is the total amount ot budgeted direct labor for March? O S49400 S2470 S9100 $18200 Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SUBMIT ANSWED SAVE FOR LATER

Explanation / Answer

Calculate budgeted labour cost :

Production unit in march = 380

Labour hour per unit = 0.50

Production hours = 380*.50 = 190 hour

Budgeted labour cost = 190*13 = 2470

so answer is b) $2470