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Jay Company has budgeted production o f units for the next three months as follows: e Produced January February March Budgeted Units to b 8,500
Jay Company has budgeted production o f units for the next three months as follows: e Produced January February March Budgeted Units to b 8,500 units 2,400 units 7,900 units Every unit produced requires 2.5 dire ct labor hours to make and direct laborers are paid $16 per hour. The company is currently preparing a direct labor budget. Assume that Jay Company pays 70% of i ts direct labor in the same month the employee works and pays the other 30% in the month after the empl oyee works. Calculate the budgeted cash payments for direct labor for the month of March.
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