Production Estimates for July Are as Follows ? for Each Unit Produced 4 Hours of Direct Labor

question 126

Multiple Choice

Production estimates for July are as follows: $\begin{array}{lr}\text { Estimated inventory (units) , July 1 } & 725 \\\text { Desired inventory (units) , July 31 } & 1,200 \\\text { Expected sal es volume (units) , July } & 7,500\end{array}$ ? For each unit produced 4 hours of direct labor is required.The labor rate per hour is $15.The number of direct labor hours required for July production is:

• A) 25,200.
• B) 27,100.
• C) 31,900.
• D) 34,800.

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