FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Part #4: F Company’s Production Budget indicates that 12,000 units will be produced in April and 11,800 units in May. Workers are paid $21 per hour. It generally takes a worker 15 minutes (which is .25 hours) to make a unit. Prepare a Direct Labor Budget with columns for April and May only.
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- Tora Company plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per hour. Prepare a direct labor budget for July. Units to produce TORA COMPANY Direct Labor Budget Direct labor hours needed Cost of direct labor July 1,020arrow_forwardAssume a company’s sales budget for April and May is 31,000 units and 33,000 units, respectively. Its production budget for the same two months is 28,000 units and 29,000 units, respectively. Each unit of finished goods required 6 pounds of raw materials. The company always maintains raw materials inventory equal to 30% of the following months production needs. Also assume the company pays $2.00 per pound of raw material. It always pays for 60% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31st is $131,000. What would be the accounts payable balance at the end of April?arrow_forwardPooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.75 direct labor-hours. The direct labor rate is $11.80 per direct labor-hour. The production budget calls for producing 6,700 units in April and 6,500 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? Multiple Choice $122,189.00 $116,820.00 $129,328.00 $134,225.00arrow_forward
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