Lao Shu Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units (RP) are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? A. $579,600 B. $590,400 C. $601,200 D. $648,000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 1P: The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional...
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Lao shu company is..accounting question

Lao Shu Company is preparing its direct labor budget for May.
Projections for the month are that 16,700 units (RP) are to be
produced and that direct labor time is three hours per unit. If the
labor cost per hour is $12, what is the total budgeted direct labor
cost for May?
A. $579,600
B. $590,400
C. $601,200
D. $648,000
Transcribed Image Text:Lao Shu Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units (RP) are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? A. $579,600 B. $590,400 C. $601,200 D. $648,000
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