Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of BR500 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for BR500 for this period are

Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of BR500 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for BR500 for this period are

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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Question

Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of
BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a
beginning finished inventory of 800 units. Each unit of BR500 requires two labor
operations, one labor hour of assembling and two labor hours of polishing. The direct
labor rate for assembling is $10 per assembling hour and the direct labor rate for
polishing is $12.50 per polishing hour.
The expected number of hours of direct labor for BR500 for this period are
O 8,800 hours of assembling; 17,600 hours of polishing
O 11,200 hours of assembling: 22,400 hours of polishing
17,600 hours of assembling: 8,800 hours of polishing
O 22,400 hours of assembling: 11,200 hours of polishing

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