LBC Corporation Makes and Sells a Product Called Product WZ

question 100

Multiple Choice

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.6 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The company plans to sell 33,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 550 and 130 units, respectively. Budgeted direct labor costs for June would be:

• A) $487,500
• B) $1,759,320
• C) $1,778,070
• D) $1,796,820

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