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Lube-Fast Provides Oil Changes and Lubes

Question 131

Essay

Lube-Fast provides oil changes and lubes. The estimated number of oil changes for April and May are 3,600 and 4,000. Each oil change takes 12 minutes of direct labour. The wage rate is $10 per hour. Manufacturing overhead is $3,700 per month and $2 per oil change.
Required:
A. Calculate the budgeted direct labour for April.
B. Calculate the budgeted direct labour for May.
C. Calculate the budgeted manufacturing overhead for April.
D. Calculate the budgeted manufacturing overhead for May.

Correct Answer:

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A. Budgeted direct labour for April = $7...

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