FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.90 direct labor-hours. The direct labor rate is $9.90 per direct labor-hour. The production budget calls for producing 2,600 units in June and 2,400 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? $44,550.00 $22,275.00 $21,384.00 $23,166.00arrow_forwardJackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 1,200 square meters. What will leather purchases be in August? Multiple Choice 3,955 square meters 7,910 square meters 7,835 square meters 3,805 square metersarrow_forwardSmith Corporation makes and sells a single product called a Pod. Each Pod requires 1.6 direct labor-hours at $9.80 per direct labor-hour. The direct labor workforce is fully adjusted each month to the required workload. Smith Corporation is preparing a Direct Labor Budget for the second quarter of the year. In June the company has budgeted to produce 22,200 Pods. Budgeted direct labor costs incurred in June would be: (Round your intermediate calculations to 2 decimal places.) Multiple Choice с $524,404 $348,096 $251,080 $217,560arrow_forward
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