Vaughn Manufacturing is planning to produce 600 composting bins and sell 480 composting bins during March Each composting bin 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 $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Vaughn has 400 kilos of plastic in beginning direct materials inventory and wants to have 350 kilos in ending direct materials inventory. What is total amount budgeted for direct labor in March? $90000 $4500 $10500 $5250
Vaughn Manufacturing is planning to produce 600 composting bins and sell 480 composting bins during March Each composting bin 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 $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Vaughn has 400 kilos of plastic in beginning direct materials inventory and wants to have 350 kilos in ending direct materials inventory. What is total amount budgeted for direct labor in March? $90000 $4500 $10500 $5250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vaughn Manufacturing is planning to produce 600 composting bins and sell 480 composting bins during March. Each composting bin
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 $15 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Vaughn has 400 kilos of plastic in
beginning direct materials inventory and wants to have 350 kilos in ending direct materials inventory. What is total amount budgeted
for direct labor in March?
$90000
$4500
$10500
$5250
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