Question
Facts: A company expects to sell 1,000 units of product A. In the beginning inventory, the company has 200 units of product A and would
Facts:
A company expects to sell 1,000 units of product A. In the beginning inventory, the company has 200 units of product A and would like to finish the year with only 50 units of Product A in inventory. For each unit of product A, the company expects to incur 3 hours of direct labor per unit produced and expects to pay direct labor costs of $21.50 per hour.
1. Based on these facts, how many units of Product A must the company manufacture during the year?
2. Based on the answer to question #1, what is the company's budgeted direct labor costs?
Thank you!!
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