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A company's production budget reflects the following information for the first three months of the year: January February March Units to be produced 7,800 8,400
A company's production budget reflects the following information for the first three months of the year:
January | February | March | |
Units to be produced | 7,800 | 8,400 | 8,200 |
Each unit requires four direct labour hours at a rate of $7 per hour.
In the cash budget for February, what amount should be allocated for wages if 75% of wages are paid in the month of production and the remaining 25% in the following month?
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