Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 6 \text { per train } \
\text { Administration } & \$ 12,000 \text { per month} \
\text { Indirect factory labor } & \$ 4 \text { per train } \
\text { Direct factory labor } & \$ 6 \text { per train }
\end{array}$

The following information applies to the upcoming month of July for Priceless Memories Company:
Budgeted production 1,500 unit:
Budgeted sales 1,300 unit:

Refer to Priceless Memories Company.What is Priceless Memories' budgeted factory labor cost for July?

Question

Priceless Memories Company
Priceless Memories Company manufactures toy trains.Information on Priceless Memories Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 6 \text { per train } \
\text { Administration } & \$ 12,000 \text { per month} \
\text { Indirect factory labor } & \$ 4 \text { per train } \
\text { Direct factory labor } & \$ 6 \text { per train }
\end{array}$

The following information applies to the upcoming month of July for Priceless Memories Company:
Budgeted production                   1,500 unit:
Budgeted sales                              1,300 unit:

Refer to Priceless Memories Company.What is Priceless Memories' budgeted factory labor cost for July?

Quizplus · Accepted Answer

The budgeted factory labor cost for July includes both direct and indirect factory labor costs. Direct factory labor is $6 per train, and indirect factory labor is $4 per train. With a budgeted production of 1,500 units, the total factory labor cost is calculated as follows: $1,500 \times (\$6 + \$4) = 1,500 \times \$10 = \$15,000.$

Priceless Memories Company Priceless Memories Company Manufactures Toy Trains The Following Information Applies to the Upcoming Month of July

Priceless Memories Company
Priceless Memories Company Manufactures Toy Trains The Following Information Applies to the Upcoming Month of July