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.?