Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Man overhead is applied at a rate of 110% of direct labor costs. Sunland has 200 kilos of plastic in beginning inventory and wants t 300 kilos in ending inventory. How much is the total amount of budgeted direct labor for March? 4 O $5400 O $10800 O $8820 O $176400

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic
and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing
overhead is applied at a rate of 110% of direct labor costs. Sunland has 200 kilos of plastic in beginning inventory and wants to have
300 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?
O $5400
O $10800
O $8820
O $176400
Transcribed Image Text:Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sunland has 200 kilos of plastic in beginning inventory and wants to have 300 kilos in ending inventory. How much is the total amount of budgeted direct labor for March? O $5400 O $10800 O $8820 O $176400
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