Question

Jolly Company has the following budgeted sales in units for the next three months: Budgeted Sales...

Jolly Company has the following budgeted sales in units for the next three months: Budgeted Sales in Units May 2,900 units June 6,300 units July 4,100 units Past experience has shown that the ending finished goods inventory for each month should be equal to 38% of the next month's expected sales in units. Additionally, it is known that every unit produced requires 2.5 direct labor hours to make and Jolly Company pays its direct labor workers $17.50 per hour. Calculate the budgeted direct labor cost for June.

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Answer #1

Production Unit = 6300+(4100*38%)-(6300*38%) = 5464 Units

June
Production Unit 5464
Labor hour per unit 2.5
Production labor hour 13660
Rate per hour 17.50
Direct labor cost 239050
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