The following information pertains to Suhaila Company: Time Period 1 st Quarter 2 nd Quarter 3 rd
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Question:
The following information pertains to Suhaila Company:
Time Period | 1st Quarter | 2nd Quarter | 3rd Quarter |
Beginning finished goods units | 5,000 units | 4,000 units | 12,000 units |
Projected sales units | 50,000 units | 40,000 units | 120,000 units |
Desired ending finished goods units | 4,000 units | 12,000 units | 15,000 units |
Each unit requires ½ an hour of direct labor at $8 per hour |
Which of the following statements is false?
a.
Direct labor cost for the 1st quarter will be $196,000
b.
Direct labor hours for the 4th quarter cannot be determined
c.
Direct labor cost for the 2nd quarter will be $192,000.
d.
Direct labor hours for the 3rd quarter will be 66,000 hours
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