ABC manufactures a single product that requires four productive labour hours per unit to complete. The nature of the pro
Posted: Fri Jul 01, 2022 9:00 am
ABC manufactures a single product that requires fourproductive labour hours per unit to complete. The nature of theproduction operations is such that, for 20% of all labour time paidfor, employees are idle and not actively engaged on productionbecause they are waiting for work
Details from the budgets for next month are asfollows:
Budgeted opening inventory of finishedgoods
1,200 units
Budgeted closing inventory of finishedgoods
700 units
Budgeted sales
2,250 units
Budgeted direct labour rate to be paid perhour
£12
What is the budgeted labour cost for nextmonth?
A. £165,000
B. £132,000
C. £105,000
D. £84,000
Details from the budgets for next month are asfollows:
Budgeted opening inventory of finishedgoods
1,200 units
Budgeted closing inventory of finishedgoods
700 units
Budgeted sales
2,250 units
Budgeted direct labour rate to be paid perhour
£12
What is the budgeted labour cost for nextmonth?
A. £165,000
B. £132,000
C. £105,000
D. £84,000