Secret Prizes, Inc.is planning to sell 200 buckets and produce 190 buckets during March.Each bucket requires 500 grams of plastic and one-half hour of direct labour.Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour.Manufacturing overhead is applied at a rate of 110% of direct labour costs.Secret Prizes has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory.How much is the total amount of budgeted direct labour for March?

Question

Quizplus · Accepted Answer

Direct labour hours = 190 buckets x 0.5 hour per bucket = 95 hoursDirect labour cost = 95 hours x $15.00 per hour = $1,425