Poblem 1: Looker Hats is planning to sell 600 felt hats, and 700 will be produced during June. Each hat requires 1/2 yard of felt and 1/4 hour of direct labor. Felt costs $3.00 per yard and employees of the company are paid $20 per hour. How much is the total amount of budgeted direct labor for June?
a. $3,000
b. $48,000
c. $3,500
d. $2,400
Poblem 2: Given the following data, compute equivalent units of production for conversion costs:
Beginning Work in Process 8,000 units, 40% complete
Units Completed and Transferred Out 80,000 units
Ending Work in Process 6,000 units, 20% complete.
a. 78,000
b. 81,200
c. 84,400
d. 86,000