Hall Company manufactures pool tables.The company has a policy of maintaining a finished goods inventory equal to 35 percent of the next month's planned sales.Each card table requires 4 hours of labor.The budgeted labor rate for the coming year is $12 per hour.Planned sales for the months of July,August,and September are respectively 6,000;8,000;and 5,000 units.What is Hall Company's budgeted direct labor cost for August?

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For August, the planned sales are 8,000 units. To calculate the budgeted direct labor cost, we need to consider the finished goods inventory policy, which aims to keep an inventory equal to 35% of the next month's sales (September, in this case). However, the inventory policy does not directly affect the calculation of direct labor cost for producing the planned sales units for August. Direct labor cost is calculated as follows:- Each pool table requires 4 hours of labor.- The labor rate is $12 per hour.- Planned sales for August are 8,000 units.Thus, the total direct labor cost for August = 8,000 units * 4 hours/unit * $12/hour = $384,000.However, none of the provided options exactly match this calculation, suggesting a possible mistake in my calculation or a misunderstanding of the question's requirements. Given the options and the closest match to the expected calculation process:The correct calculation should consider the direct labor hours and rate provided:$$ \text{Direct Labor Cost} = \text{Units} \times \text{Labor Hours per Unit} \times \text{Labor Rate} $$$$ \text{Direct Labor Cost for August} = 8,000 \times 4 \times 12 = 384,000 $$Given the options and the calculation mistake acknowledged, the correct answer based on the provided options and the expected process would be closest to or a reevaluation of the calculation based on the given data. Since none of the options match the recalculated figure and acknowledging a mistake in the initial explanation, further clarification or correction is needed based on the correct interpretation of the question's requirements and the provided data.

Hall Company Manufactures Pool Tables