21. Award: 0 out of 2.00 points MC Qu. 124 The LFG Corporation ... The LFG Corpo

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21.

Award: 0 out of 2.00 points

MC Qu. 124 The LFG Corporation ...

The LFG Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFG Corporation needs to prepare a Direct Labor Budget for the second quarter of next year.

The company has budgeted to produce 24,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 600 and 800 units, respectively. Budgeted direct labor costs for June would be:

A)$235,200

B)$329,280

C)$326,536

D)$332,024

Explanation / Answer

Budgeted production = 24000+800-600 = 24200 Budgeted direct labor costs for June = 24200*1.4*9.8= 332024 Option D is correct

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