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Dennis Manufacturing makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of
Dennis Manufacturing makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $16.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 31,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 100 and 600 units, respectively. Budgeted direct labor costs for June would be:
Select one:
a. $1,764,000
b. $504,000
c. $1,708,000
d. $1,736,000
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