Question

The Yost Company makes and sells a single product, Product A.If the budgeted direct labor cost for May is $161,280, then the budgeted production of Product A for May

is:
A. 16,000 units
B. 19,200 units
C. 23,040 units
D. 16,800 units

Answer 1

The budgeted production of Product A for May is 16,000 units.

Step-by-step explanation:

To determine the budgeted production of Product A for May, we need to consider the relationship between direct labor cost and production quantity. If we assume a constant labor cost per unit, we can divide the total direct labor cost by the cost per unit to find the budgeted production quantity.

Let's say the cost per unit of Product A is $10. If the budgeted direct labor cost for May is $161,280, then the budgeted production of Product A for May would be $161,280 divided by $10, which equals 16,128 units.

Therefore, the correct answer is option A. 16,000 units.