LHU Corporation Makes and Sells a Product Called Product WZ

question 61

Multiple Choice

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
-The company plans to sell 38,000 units of Product WZ in June.The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 100 units,respectively.Budgeted direct labor costs for June would be:

• A)$562,500
• B)$1,425,000
• C)$1,406,250
• D)$1,443,750

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