Each production worker can produce 5 wooden chairs per hour.During the month of June, Chairs, Inc.has forecasted sales of 100,000 chairs.The beginning inventory was 1,000 chairs, and desired ending inventory is 2,500 chairs.How many hours of direct labour must be budgeted to meet production needs?

Question

Quizplus · Accepted Answer

The correct answer is A.The company needs to produce 100,000 - 1,000 + 2,500 = 101,500 chairs. Each worker can produce 5 chairs per hour, so the total number of hours needed is 101,500 / 5 = 20,300 hours.

Each Production Worker Can Produce 5 Wooden Chairs Per Hour