Question
Crane Toys is planning to sell 252 action figures and to produce 244 action figures in July. Each action figure requires 126 grams of plastic
Crane Toys is planning to sell 252 action figures and to produce 244 action figures in July. Each action figure requires 126 grams of plastic and a half hour of direct labor. The cost of the plastic used in each action figure is $5 per 126 grams. Employees of the company are paid at a rate of $15 per hour. Manufacturing overhead is applied at a rate of 1209 of direct labor costs. Crane Toys has 113400 grams of plastic in its beginning inventory and wants to have 100800 grams in its ending inventory. What is the amount of budgeted direct labor cost for the month of July?
O $1890.
O $1830.
$3660.
O $3780.
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