Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella o October 20,000 units o November 22,000 units o December 25,000 units o January ¹23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) • Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like 20,000 lbs. of direct materials at the end of October, 35,000 lbs. of direct materials at the end of November, and o 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total direct labor cost for the month of December for Journey's?
Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella o October 20,000 units o November 22,000 units o December 25,000 units o January ¹23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) • Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like 20,000 lbs. of direct materials at the end of October, 35,000 lbs. of direct materials at the end of November, and o 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total direct labor cost for the month of December for Journey's?
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
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