Howe Industries has prepared the quarterly production budget that appears below:
The production budget is consistent with the company's inventory policy requiring ending inventories of finished goods equal to 10% of the following quarter's needs. The company is currently preparing its budget for direct labor. It is known that 1.5 hours of direct labor is required per unit produced and that the direct labor wage rate is $25 per hour. What number of direct labor hours and wages will be required in the second quarter?
A) 30,000 hours and $750,000
B) 33,600 hours and $840,000
C) 36,000 hours and $900,000
D) 20,000 hours and $500,000

Question

Howe Industries has prepared the quarterly production budget that appears below:
 The production budget is consistent with the company's inventory policy requiring ending inventories of finished goods equal to 10% of the following quarter's needs. The company is currently preparing its budget for direct labor. It is known that 1.5 hours of direct labor is required per unit produced and that the direct labor wage rate is $25 per hour. What number of direct labor hours and wages will be required in the second quarter?
A) 30,000 hours and $750,000 
B) 33,600 hours and $840,000 
C) 36,000 hours and $900,000 
D) 20,000 hours and $500,000

Quizplus · Accepted Answer

The Answer of Howe Industries has prepared the quarterly production budget that appears below:
 The production budget is consistent with the company's inventory policy requiring ending inventories of finished goods equal to 10% of the following quarter's needs. The company is currently preparing its budget for direct labor. It is known that 1.5 hours of direct labor is required per unit produced and that the direct labor wage rate is $25 per hour. What number of direct labor hours and wages will be required in the second quarter?
A) 30,000 hours and $750,000 
B) 33,600 hours and $840,000 
C) 36,000 hours and $900,000 
D) 20,000 hours and $500,000

Howe Industries Has Prepared the Quarterly Production Budget That Appears