Use the Following to Answer Questions

question 52

Multiple Choice

Use the following to answer questions
Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below:
Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory.
-Each finished unit requires 2 direct labor hours.The average direct labor rate is $14 per hour.What amount should Hepburn budget for direct labor for April?

• A)$1,596,000
• B)$1,464,400
• C)$ 732,200
• D)$ 104,600