15

Refer to Exhibit 10-1. Based on this information, what is the standard cost per direct labor hour (rounded to the nearest cent)?

		$5.29
		$3.11
		$3.00
		$15.00
		None of the answer choices is correct.

Exhibit 9-1 Sporting Inc. is a distributor which sells one product for $100 per unit. Sporting pays $60 to buy the product. In addition, fixed costs total $60.000 per month. Sporting wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales. Purchases are paid in the month after purchase. Sporting makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale. Budgeted monthly sales in units for the first five months of 2013 are as follows: January February March April May 10.000 units 15,000 units 18,000 units 20,000 units 16,000 units Exhibit 9-1 Sporting Inc. is a distributor which sells one product for $100 per unit. Sporting pays $60 to buy the product. In addition, fixed costs total $60.000 per month. Sporting wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales. Purchases are paid in the month after purchase. Sporting makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale. Budgeted monthly sales in units for the first five months of 2013 are as follows: January February March April May 10.000 units 15,000 units 18,000 units 20,000 units 16,000 units