Question: 35 Boston Products has a production budget as follows: May, 19,000 units; June, 22,000 units; and July, 27,000 units. Each unit requires 2.5 labor hours at $10 per hour. What would be the budgeted direct labor cost for June? A. $675,000 B. $220,000 C. $55,000 D. $550,000 Answer: D. $550,000
Question: 35 Boston Products has a production budget as follows: May, 19,000 units; June, 22,000 units; and July, 27,000 units. Each unit requires 2.5 labor hours at $10 per hour. What would be the budgeted direct labor cost for June? A. $675,000 B. $220,000 C. $55,000 D. $550,000 Answer: D. $550,000
Chapter7: Budgeting
Section: Chapter Questions
Problem 7EB: Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years...
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
Transcribed Image Text:Question: 35
Boston Products has a production budget as follows: May, 19,000
units; June, 22,000 units; and July, 27,000 units. Each unit requires
2.5 labor hours at $10 per hour. What would be the budgeted direct
labor cost for June?
A. $675,000
B. $220,000
C. $55,000
D. $550,000
Answer: D. $550,000
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