Santova Limited manufactures and sells two products. The following information is available for 2024: Sales forecasts(units) : July August September Product A 2 000 1 900 2 400 R120 Product B 4 100 3 800 4 200 Selling price per unit Labour requirements for each unit of finished product R250 Direct labour Product A 5 hours Product B 6 hours Direct labour cost R60 per hour Finished Goods - Stock levels: Product A (units) Opening stock July 100 Closing stock 200 August 250 September 150 The number of labour hours required for production of Product A in August will total: O A. 10 750 B. 8 250 ○ C. 9 500 O D. 9750

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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Santova Limited manufactures and sells two products. The following information is available for 2024:
Sales forecasts(units) :
July
August
September
Product A
2 000
1 900
2 400
R120
Product B
4 100
3 800
4 200
Selling price per unit
Labour requirements for each unit of finished product
R250
Direct labour
Product A
5 hours
Product B
6 hours
Direct labour cost
R60 per hour
Finished Goods - Stock levels: Product A (units)
Opening stock
July
100
Closing stock
200
August
250
September
150
The number of labour hours required for production of Product A in August will total:
O A. 10 750
B. 8 250
○ C. 9 500
O D. 9750
Transcribed Image Text:Santova Limited manufactures and sells two products. The following information is available for 2024: Sales forecasts(units) : July August September Product A 2 000 1 900 2 400 R120 Product B 4 100 3 800 4 200 Selling price per unit Labour requirements for each unit of finished product R250 Direct labour Product A 5 hours Product B 6 hours Direct labour cost R60 per hour Finished Goods - Stock levels: Product A (units) Opening stock July 100 Closing stock 200 August 250 September 150 The number of labour hours required for production of Product A in August will total: O A. 10 750 B. 8 250 ○ C. 9 500 O D. 9750
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