Question
Carson Products Inc. manufactures LEDs (light emitting diodes) for use in vehicles. At 30 September, the company had 5000 LED units in inventory. The company's
Carson Products Inc. manufactures LEDs (light emitting diodes) for use in vehicles. At 30 September, the company had 5000 LED units in inventory. The company's policy is to maintain a LED ending inventory equal to 25 per cent of next month's sales. In addition, each LED manufactured requires 2 minutes of assembly and inspecting time at a cost of $.30 per minute.
The company expects the following sales activity for the fourth quarter of the year:
October 90 000 units
November 50 000 units
December 80 000 units
What is the projected direct labour cost for November?
$57 000
$34 500
$72 500
$63 500
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