Lindburgh Company
Lindburgh Company manufactures toy airplanes.Information on Lindburgh Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 5 \text { per plane } \
\text { Administration } & \$ 10,000 \text { per month } \
\text { Indirect factory labor } & \$ 3 \text { per plane } \
\text { Direct factory labor } & \$ 5 \text { per plane }
\end{array}$

The following information applies to the upcoming month of July for Lindburgh Company:
Budgeted production 1,200 unit
Budget sales 1,000 unit:

Refer to Lindburgh Company.What is Lindburgh's budgeted factory labor cost for July?

Question

Lindburgh Company
Lindburgh Company manufactures toy airplanes.Information on Lindburgh Company's labor costs follow:
$\begin{array}{ll}
\text { Sales commissions } & \$ 5 \text { per plane } \
\text { Administration } & \$ 10,000 \text { per month }  \
\text { Indirect factory labor } & \$ 3 \text { per plane } \
\text { Direct factory labor } & \$ 5 \text { per plane }
\end{array}$

The following information applies to the upcoming month of July for Lindburgh Company:
Budgeted production                    1,200 unit
Budget sales                                1,000 unit:

Refer to Lindburgh Company.What is Lindburgh's budgeted factory labor cost for July?

Quizplus · Accepted Answer

The budgeted production is 1,200 units and the direct factory labor cost per unit is $5. Therefore, the total budgeted direct factory labor cost is:
1,200 x $5 = $6,000
Hence, option D is the correct answer.

Lindburgh Company Lindburgh Company Manufactures Toy Airplanes The Following Information Applies to the Upcoming Month of July

Lindburgh Company
Lindburgh Company Manufactures Toy Airplanes The Following Information Applies to the Upcoming Month of July