Question
Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are
Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below:
| July | August | September | |
|---|---|---|---|
| Budgeted sales (in units) | 7,600 | 9,600 | 11,600 |
| Budgeted production (in units) | 8,600 | 11,100 | 13,600 |
Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?
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Management Accounting Evolution Not Revolution
Authors: Michael Bromwich, Al Bhimani
1st Edition
0908269137, 978-0908269136
