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Jordan Auto has developed the following production plan. Month Units January 10,000 February 8,000 March April 9,000 12,000 Each unit contains three pounds of
Jordan Auto has developed the following production plan. Month Units January 10,000 February 8,000 March April 9,000 12,000 Each unit contains three pounds of raw material. The desired raw material ending inventory each month is 120 percent of the next month's production, plus 500 pounds. (The beginning inventory meets this requirement.) Jordan has developed the following direct labor standards for production of these units. Department 1 Department 2 Hours per unit 2.0 0.5 Hourly rate $6.75 $12.00 Jordan Auto's total budgeted direct labor dollars for February usage should be O $156,000 $165 750
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