Question
Vebco manufactures a product requiring 0,5 grams of platinum per unit. The cost of platinum is approximately R360 per gram. Vebco maintains an ending inventory
Vebco manufactures a product requiring 0,5 grams of platinum per unit. The cost of platinum is approximately R360 per gram. Vebco maintains an ending inventory of platinum equal to 10 per cent of the following month's production. The following data were taken from the most recent quarterly production budget.
| July | August | September |
Planned product ion (units) | 1 000 | 1 100 | 980 |
If each unit takes 2,5 direct labour hours to produce and Vebco's cost per labour hour is R15, determine the amount that should be budgeted for direct labour in September.
A. R 5 880
B. R 14 700
C. R 18 375
D. R 36 750
E. R115 500
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