What is the Budgeted direct labor cost for the month of December? Journey's Umbrella Factory Sales
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What is the Budgeted direct labor cost for the month of December?
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Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units o November 22,000 units o December 25,000 units o January '23 21,000 units Journey's will begin Q4 with 28,000 units in finished goods (FG) Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory ● • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like • 20,000 lbs. of direct materials at the end of October, • 35,000 lbs. of direct materials at the end of November, and o 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. . What is the total amount of budgeted labor hours for the month of October for Journey's? Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units o November 22,000 units o December 25,000 units o January '23 21,000 units Journey's will begin Q4 with 28,000 units in finished goods (FG) Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory ● • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like • 20,000 lbs. of direct materials at the end of October, • 35,000 lbs. of direct materials at the end of November, and o 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. . What is the total amount of budgeted labor hours for the month of October for Journey's?
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