Question

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.2 hours of direct labor at the rate of $28.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 37,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 590 and 170 units, respectively. Budgeted direct labor costs for June would be:

Answer 1

Step-by-step explanation:

Direct Labour cost = Time doing the job x Wage

Budgeted Direct labor cost = 3.2 hours per unit x $28.00

Budgeted Direct labor cost = 89.6 per unit

Product WZ per unit cost 89.6