Stumble Inc

question 124

Multiple Choice

Stumble Inc. plans to sell 100,000 units in March and 140,000 units in April. Stumble Inc.'s policy is that 15% of the following month's sales must be in ending inventory. On March 1, 13,400 units were in inventory.
It takes 15 minutes of direct labour time to make one unit. Direct labour wages average $20 per hour. Variable overhead is applied at the rate of $3 per direct labour hour. Fixed overhead is budgeted at $44,500 per month.
-Refer to the Figure.What is the direct labour cost budgeted for March?

• A)$26,900
• B)$107,600
• C)$322,800
• D)$538,000

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Definitions:

Injection of Wastes

The disposal of waste by pumping it below the earth's surface into porous rock formations.

Clean Water Act

U.S. federal law aimed at reducing pollution and protecting the quality of the nation’s waters.

Environmental Impact Statement

A document that describes the effects of proposed projects on the environment, required for certain actions by government agencies.

National Environmental Policy Act

U.S. legislation aimed at ensuring that governmental activities consider environmental impacts and involve public engagement.