The Yost Company Makes and Sells a Single Product, Product

question 15

Multiple Choice

The Yost Company makes and sells a single product, Product A. Each unit of Product A requires 1.2 hours of labor at a labor rate of $8.40 per hour. Yost Company needs to prepare a Direct Labor Budget for the second quarter.
-The company has budgeted to produce 20,000 units of Product A in June.The finished goods inventories on June 1 and June 30 were budgeted at 400 and 600 units,respectively.Budgeted direct labor cost for June is:

• A)$207,648
• B)$168,000
• C)$199,584
• D)$201,600

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Definitions:

Prestige

The respect and admiration that something or someone receives based on a perception of their success or quality.

Breakeven Analysis

Pricing-related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Unit Contribution

The amount each unit sold contributes to covering fixed costs and generating profit, calculated as the unit selling price minus variable cost per unit.