Computing direct labour budgeted


Q1) Looker Hats is planning to sell 600, and produce felt hats 700 during June. Each hat needs 1/2 yard of felt and 1/4 hour of direct labour. Felt costs $3.00 per yard and employees of company are paid $20 per hour. How much direct labour must be budgeted for June?

i) $3,500

ii) $3,000

iii) $2,400

iv) $525

v) Cannot be find out from information given.

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Accounting Basics: Computing direct labour budgeted
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