Conroy Company Manufactures Card Tables

question 65

Multiple Choice

Conroy Company manufactures card tables.The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales.Each card table requires 3 hours of labor.The budgeted labor rate for the coming year is $13 per hour.Planned sales for the months of April,May,and June are respectively 4,000; 5,000; and 3,000 units.What is Conroy Company's budgeted direct labor cost for May?

• A)$54,600
• B)$163,800
• C)$226,200
• D)$179,400

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