Homework Answers
Answer: $41,48,172
Explanation
Each unit of product requires 3.1 hours of direct labor at the rate of $27 per hour. Thus, the budgeted direct labor cost per unit = 3.1 * 27 = $83.70
Budgeted direct labor cost for June = Ending inventory + Units sold - Beginning inventory
= 180 + 50,000 - 620
= 49,560 units
Therefore, Labor cost for June = 49,560 units x $83.70
= $41,48,172
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