Question
Company Inc. is planning to produce 190 buckets and sell 200 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of
Company Inc. is planning to produce 190 buckets and sell 200 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labour. Plastic costs $10 per 500 grams, and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labour costs. Company Inc has 300 kilograms of plastic in beginning inventory and wants to have 200 kilograms in ending inventory.
The total amount of budgeted direct labour for March is $1,425.
Explain how they arrived to the answer of $1,425.
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