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DUSTIN manufactures a product requiring two ounces of platinum per unit. The cost of platinum is approximately $500 per ounce. DUSTIN maintains an ending inventory
DUSTIN manufactures a product requiring two ounces of platinum per unit. The cost of platinum is approximately $500 per ounce. DUSTIN maintains an ending inventory of platinum equal to 10% of the following months production usage. The following data was taken from the most recent quarterly production budget. JULY AUGUST SEPTEMBER Planned Production in units 3,000 3,500 4,000 Required: If it takes 4 direct labor hours to produce each unit and labor costs $25 per hour, what is the amount that should be budgeted for direct labor in September?........Please provide detailed calculations and answer in the space below
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