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Shamokin Manufacturing produces a Tourbillon watch movement called OM362. Shamokin expects to sell 10,000 units of OM362 and to have an ending finished inventory of
Shamokin Manufacturing produces a Tourbillon watch movement called OM362. Shamokin expects to sell 10,000 units of OM362 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of OM362 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for OM362 Bigger is 11,200 hours of assembling; 22,400 hours of polishing 22,400 hours of assembling; 11,200 hours of polishing 8,800 hours of assembling; 17,600 hours of polishing 17,600 hours of assembling; 8,800 hours of polishing
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