It Takes 30 Minutes of Direct Labor Time to Make

question 152

Multiple Choice

It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month.
-Refer to Figure 9-4. What is the budgeted production in units for November?

• A) 100,000
• B) 140,000
• C) 121,000
• D) 125,600
• E) 139,000

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Definitions:

Credit Sales

Transactions where the payment is delayed as per agreed terms, allowing the buyer to pay the seller at a later date.