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Production estimates for July are as follows:

Estimated inventory (units), July 1 725
Desired inventory (units), July 31 1, 200
Expected sales volume (units), July 7,500

For each unit produced four hours of direct labor is required. The labor rate per hour is $15. The number of direct labor hours required for July production is:_________

Respuesta :

Answer:

31,900

Explanation:

For the computation of the number of direct labor hours required for July production first we need to find out the production in units which is shown below:-

Production in units = Expected sales in Units + Ending Inventory - Beginning inventory

= 7,500 + 1,200 - 725

= 7,975

Total direct labor hours required = Production in units × Hours per unit

= 7,975 × 4

= 31,900

We simply applied the above formulas