Zhang Industries Budgets Production of 300 Units in June and 310

question 36

Multiple Choice

Zhang Industries budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate is $14 per hour. The indirect labor rate is $21.00 per hour. Compute the budgeted direct labor cost for July.

• A) $6,510.
• B) $16,275.
• C) $9,450.
• D) $9,765.
• E) $6,300.

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Definitions:

Implied Warranty

A guarantee that is not written or spoken but is understood and legally binding, ensuring goods or services meet certain standards of quality and reliability.

Implied Warranty

A legal presumption that a product will fulfill the basic functions for which it was sold, without being explicitly stated by the seller.

Merchantability

Concerns the basic standard of quality and functionality that goods sold must meet, implying they are fit for the general purpose for which they are sold.

Fitness

A state of health and well-being, often focused on the ability to perform physical activities or meet specific physical criteria.