LFM Corporation Makes and Sells a Product Called Product WZ

question 64

Multiple Choice

LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $16.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 31,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 100 and 600 units, respectively. Budgeted direct labor costs for June would be:

• A)$1,764,000
• B)$504,000
• C)$1,708,000
• D)$1,736,000

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Definitions:

Motivation Theories

A set of principles concerning what drives individuals to initiate and sustain actions towards achieving their goals.

Expectancy Theory

A motivational theory that explains how individuals decide to behave in ways that they believe will lead them to desired outcomes based on expectations of future events.

Goal Orientation

A mindset that focuses on achieving specific outcomes or benchmarks as a means to promote success or accomplishment.

Proximal Goals

Short-term objectives set to be achieved in the near future that help to achieve a long-term goal.