The LFG Corporation Makes and Sells a Single Product, Product

question 140

Multiple Choice

The LFG Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.4 direct labor-hours at a rate of $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. LFG Corporation needs to prepare a Direct Labor Budget for the second quarter of next year. The company has budgeted to produce 24,000 units of Product T in June. The finished goods inventories on June 1 and June 30 were budgeted at 600 and 800 units, respectively. Budgeted direct labor costs for June would be:

• A)$332,024
• B)$329,280
• C)$235,200
• D)$326,536

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Definitions:

Nonconforming Items

Products or outputs that do not meet predetermined standards or specifications.

Samples

Samples refer to a set of data or observations taken from a larger population and used for statistical analysis.

Control Chart

A graphical tool used in process control to monitor, control, and improve the process performance over time by tracking data points against predetermined control limits.

Run Chart

A graph that displays observed data in a time sequence to identify any trends, shifts, or patterns.