Carson Products Inc What Is the Projected Direct Labour Cost for November?
A)

question 63

Multiple Choice

Carson Products Inc.manufactures LEDs (light emitting diodes) for use in vehicles.At 30 September,the company had 5000 LED units in inventory.The company's policy is to maintain a LED ending inventory equal to 25 per cent of next month's sales.In addition,each LED manufactured requires 2 minutes of assembly and inspecting time at a cost of $.30 per minute.
The company expects the following sales activity for the fourth quarter of the year:
$\begin{array}{lr}\text { October } & 90000 \text { units } \\\text { November } & 100000 \text { units } \\\text { December } & 80000 \text { units }\end{array}$

What is the projected direct labour cost for November?

• A) $72 000
• B) $63 000
• C) $60 000
• D) $57 000

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