Carson Products Inc.manufactures LEDs (light emitting diodes) for use in vehicles.At 30 September,the company had 5000 LED units in inventory.The company's policy is to maintain a LED ending inventory equal to 25 per cent of next month's sales.In addition,each LED manufactured requires 2 minutes of assembly and inspecting time at a cost of $.30 per minute.
The company expects the following sales activity for the fourth quarter of the year:
What is the projected direct labour cost for November?
A) $72 000
B) $63 000
C) $60 000
D) $57 000
Correct Answer:
Verified
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