Question
Soxy company is considering its forthcoming projections for budget purposes. Soxy manufactures a product requiring 0.5 grams of platinum per unit. The cost of platinum
Soxy company is considering its forthcoming projections for budget purposes. Soxy manufactures a product requiring 0.5 grams of platinum per unit. The cost of platinum is approximately $360 per gram. Soxy maintains an ending inventory of platinum equal to 10% of the following months production. The following data were taken from the most recent quarterly production budget. July August September Planned Production (units) 1,000 1,100 980 If each unit takes 2.5 direct labour hours to produce and Soxys cost per labour hour is $15, determine the amount that should be budgeted for direct labour in September.
a.
$ 5,880
b.
$ 14,700
c.
$ 18,375
d.
$ 36,750
e.
$115,500
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