di Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:

At Adi, 30% of raw materials purchases are normally paid for in the month of purchase. The remaining 70% is paid for in the month following the purchase.
-The budgeted direct labor cost per Clop is closest to:

Question

di Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:

At Adi, 30% of raw materials purchases are normally paid for in the month of purchase. The remaining 70% is paid for in the month following the purchase.
-The budgeted direct labor cost per Clop is closest to:

Quizplus · Accepted Answer

Using the information provided, we can calculate the budgeted direct labor cost per Clop:
Budgeted direct labor cost per Clop = Total budgeted direct labor cost / Total expected production of Clops
= $54,000 / 6,000 Clops
= $9.00 per Clop
Therefore, the budgeted direct labor cost per Clop is closest to option C, $9.02.

Di Manufacturing Corporation Is Estimating the Following Raw Material Purchases