Hunter, Inc. manufactures tents that sell for $50 each. Each tent takes 1.5 hours to make and the labor rate averages $15 per hour. The company is planning to produce 300 tents during the month of January. What is the budgeted direct labor cost for January?

4500

6750

15,000

22500

2. Hunter, Inc. manufactures tents that sell for $50 each. The company requires that ending finished goods inventory should be 40% of next month's sales. Expected unit sales (tents) for the upcoming months are:

January 250

February 375

March 280

What is the budgeted production in units for February?

413

487

337

375

String Company makes 4 different types of ladders. Its "Model C" ladder has a net operating loss of ($3,500). Eliminating Model C would eliminate the $2,750 in direct fixed costs but none of the $6,500 in common fixed costs assigned to it. Contribution margin is $5,750 and segment margin is $3,000.

If String Company eliminated Model C, how much would total net operating income increase or decrease?

3,000 inc

3,500 inc

3,500 dec

3,000 dec