Lunchco Inc

question 9

Multiple Choice

Lunchco Inc. produces picnic tables in a two-step process. Pretreated wood is cut in the Cutting Department and then the lumber is assembled into tables in the Assembly Department. It takes 30 minutes of direct labor time to cut the lumber and the standard hourly labor rate in the Cutting Department is $12. The tables take one hour to assemble and the standard hourly rate in the Assembly Department is $10. If Lunchco's production budget is 20,000, what is the company's direct labor budget?

• A)$340,000
• B)$680,000
• C)$330,000
• D)$320,000

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Definitions:

Pennsylvania Abolition Society

is an historic organization founded in 1775, dedicated to promoting the abolition of slavery and assisting freed slaves in the United States.

Slavery

A regime where people are the property of others, lacking in personal autonomy, and compelled to work or provide services for free.

Benjamin Franklin

A leading figure of early American history, noted for his contributions as a statesman, author, printer, political theorist, and scientist, as well as one of the Founding Fathers of the United States.

Gabriel's Rebellion

Gabriel's Rebellion was an unsuccessful slave revolt planned by Gabriel Prosser in the summer of 1800 in Richmond, Virginia, reflecting the growing resistance against slavery in the early 19th century.