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Mon Inc., an automobile producer, has the following production budget for the beginning of the upcoming year: January February March April May Full Year Number
Mon Inc., an automobile producer, has the following production budget for the beginning of the upcoming year: | ||||||
January | February | March | April | May | Full Year | |
Number of cars to be produced: | 590 | 860 | 710 | 510 | 720 | 9,000 |
Expected selling price per car: | $ 41,500 | |||||
Other information about the production process is as follows: | ||||||
31 | Machine hours per unit | |||||
$ 5,300 | Direct material cost per unit | |||||
66 | Direct labour hours per unit | |||||
$ 28.00 | Wage paid per direct labour hour | |||||
$ 500,000 | Per month salaries of plant management | |||||
$ 560,000 | Per month utilities of the production facility | |||||
$ 3,776,000 | Per month depreciation on the production facility | |||||
Pre-determined manufacturing overhead is calculated prior to the year (do NOT round) and applied on the basis of machine hours. | ||||||
Other costs of the business are as follows: | ||||||
$ 790,000 | Per month advertising costs | |||||
$ 660,000 | Per month executive salaries | |||||
$ 1,360,000 | Per month insurance expense | |||||
$ 1,800 | Commission per unit sold | |||||
All sales are collected in cash. All expenses are paid in the month incurred, with the exception of depreciation and insurance. | ||||||
Insurance is paid only once each year. The yearly insurance payment is made in April. | ||||||
Required: | ||||||
In preparing a direct labour budget, what would be the direct labour expenditure for the month of March? | ||||||
(enter your final answer rounded to the nearest dollar - do NOT use any symbols like $, ., -, +. Example: $1,334.58 would be 1335) |
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