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Morgan Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month finished-goods inventory is 10% of next months
Morgan Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month finished-goods inventory is 10% of next months sales. The company wants RM ending inventory to cover 20% of next months needs. The frames each require 2 pieces of trim to manufacture and each trim costs $3 per piece. The frames also require three hours of labor. The direct labor rate is $10 per hour. 9. Prepare a direct labor budget in hours and dollars for May. What is the total budgeted direct labor cost for May for Morgan Inc.?
Morgan Inc. predicts sales of 4,000 frames in May & 14,000 units in June.
Target end of month finished-goods inventory is 10% of next months sales.
The company wants RM ending inventory to cover 20% of next months needs.
The frames each require 2 pieces of trim to manufacture and each trim costs $3 per piece. The frames also require three hours of labor. The direct labor rate is $10 per hour.
9. Prepare a direct labor budget in hours and dollars for May. What is the total budgeted direct labor cost for May for Morgan Inc.?
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