A Company manufactures exclusive chairs. The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales. Each exclusive chair requires 3 hours of labor. The budgeted labor rate for the coming year is ₱13 per hour. Planned sales for the months of January, February, and March are respectively 4,000; 5,000; and 3,000 units. What is A Company’s budgeted direct labor cost for February? a. ₱54,600 b. ₱163,800 c. ₱226,200 d. ₱179,400
A Company manufactures exclusive chairs. The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales. Each exclusive chair requires 3 hours of labor. The budgeted labor rate for the coming year is ₱13 per hour. Planned sales for the months of January, February, and March are respectively 4,000; 5,000; and 3,000 units. What is A Company’s budgeted direct labor cost for February? a. ₱54,600 b. ₱163,800 c. ₱226,200 d. ₱179,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Company manufactures exclusive chairs. The company has a policy of maintaining a finished goods inventory equal to 40 percent of the next month's planned sales. Each exclusive chair requires 3 hours of labor. The budgeted labor rate for the coming year is ₱13 per hour. Planned sales for the months of January, February, and March are respectively 4,000; 5,000; and 3,000 units. What is A Company’s budgeted direct labor cost for February?
a. ₱54,600
b. ₱163,800
c. ₱226,200
d. ₱179,400
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