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Bamboo Love, Inc. manufactures picture frames and sells them for $25 each. When preparing its Master Budget, the company estimates that it will sell
Bamboo Love, Inc. manufactures picture frames and sells them for $25 each. When preparing its Master Budget, the company estimates that it will sell 300 frames in May and 400 frames in June. The company wants to have 40% of the next month's sales in its ending inventory of frames at the end of each month. Each picture frame requires 4 feet of bamboo to produce at a cost of $2 per foot, and the company wants to have 30% of the next month's production needs in its ending direct materials inventory of bamboo. Each frame also takes 0.50 direct labor hours to produce at a cost of $12 per hour. Additionally, Bamboo's fixed manufacturing overhead is $600 per month, and variable manufacturing overhead is $0.30 per frame produced. On Bamboo's Direct Labor Budget, what is the Budgeted Direct Labor Cost for May? $2,040 $1,700 $1,620 $2,340
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