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Ivanhoe Toys is planning to sell 172 action figures and to produce 164 action figures in July. Each action figure requires 86 grams of plastic and a half hour of direct labor. The cost of the plastic used in each action figure is $5 per 86 grams. Employees of the company are paid at a rate of $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. IvanhoeToys has 77400 grams of plastic in its beginning inventory and wants to have 68800 grams in its ending inventory. What is the amount of budgeted direct labor cost for the month of July? $1290. $2580. $1230. $2460.

Ivanhoe Toys is planning to sell 172 action figures and to produce 164 action figures in July. Each action figure requires 86 grams of plastic and a half hour of direct labor. The cost of the plastic used in each action figure is $5 per 86 grams. Employees of the company are paid at a rate of $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. IvanhoeToys has 77400 grams of plastic in its beginning inventory and wants to have 68800 grams in its ending inventory. What is the amount of budgeted direct labor cost for the month of July? $1290. $2580. $1230. $2460.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ivanhoe Toys is planning to sell 172 action figures and to produce 164 action figures in July. Each action figure requires 86 grams of plastic and a half hour of direct labor. The cost of the plastic used in each action figure is $5 per 86 grams. Employees of the company are paid at a rate of $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. IvanhoeToys has 77400 grams of plastic in its beginning inventory and wants to have 68800 grams in its ending inventory. What is the amount of budgeted direct labor cost for the month of July?

$1290.
$2580.
$1230.
$2460.
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