LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The company plans to sell 38,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 100 units, respectively. Budgeted direct labor costs for June would be:

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The company plans to sell 38,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 100 units, respectively. Budgeted direct labor costs for June would be:



A. $562,500
B. $1,425,000
C. $1,406,250
D. $1,443,750





Answer: C


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