LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3 hours of direct labor at the rate of $26.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 49,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 610 and 170 units, respectively. Budgeted direct labor costs for June would be: $1,266,500 $3,825,180 $3,806,430 $3,787,680

2)

Tawstir Corporation has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. If these computers are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the computers can be sold in their present condition for $50,000.

What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

$680,000 disadvantage

$10,000 advantage

$130,000 advantage

$60,000 advantage