Please do provide the soolution for the correct answer. Thank you! Each unit of product Mindoro takes five direct labor hours to make. Quality standards are high and 8% of units produced are normally rejected due to substandard quality. Next month budgets are as follows: Beginning inventory of FG 3,000 units Planned ending inventory of FG 7,600 units Budgeted sales of Mindoro 36,800 units All stocks of finished goods must have successfully passed the quality control check. What is the direct labor budget for the month? a. 198,720 hours b. 200,000 hours c. 223,560 hours d. 225,000 hours
Please do provide the soolution for the correct answer. Thank you! Each unit of product Mindoro takes five direct labor hours to make. Quality standards are high and 8% of units produced are normally rejected due to substandard quality. Next month budgets are as follows: Beginning inventory of FG 3,000 units Planned ending inventory of FG 7,600 units Budgeted sales of Mindoro 36,800 units All stocks of finished goods must have successfully passed the quality control check. What is the direct labor budget for the month? a. 198,720 hours b. 200,000 hours c. 223,560 hours d. 225,000 hours
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 16E
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Please do provide the soolution for the correct answer. Thank you!
Each unit of product Mindoro takes five direct labor hours to make. Quality standards are high
and 8% of units produced are normally rejected due to substandard quality. Next month
budgets are as follows:
Beginning inventory of FG 3,000 units
Planned ending inventory of FG 7,600 units
Budgeted sales of Mindoro 36,800 units
All stocks of finished goods must have successfully passed the quality control check. What is the
direct labor budget for the month?
a. 198,720 hours
b. 200,000 hours
c. 223,560 hours
d. 225,000 hours
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