Northwest manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month’s production usage. The following data were taken from the most recent quarterly production budget:
July- 1,000 August 1100 Sept. 980 units
If it takes two direct labor hours to produce each unit and Northwest’s cost per labor hour is $15, direct labor cost for August would be budgeted at:
Some other amount.
$31,200.
$16,500.
$33,000.
$34,800.
