Lbc corporation makes and sells a product called product wz. each unit of product wz requires 3.0 hours of direct labor at the rate of $26.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 49,000 units of product wz in june. the finished goods inventories on june 1 and june 30 are budgeted to be 610 and 170 units, respectively. budgeted direct labor costs for june would be:

The Budgeted direct labor costs for June would be $1,262,560

Explanation:

For computing the direct labor cost, first we have to calculate how many units of production is used. The equation is shown below :

Total Production Units = Ending finished goods inventories + sales units - opening finished goods inventories

= 170 + 49,000 - 610

= 48,560 units

Now, multiply these units with direct labor hour rate which equals to

= Units produced × direct labor hour rate

= 48,560 × $26.00

= $1,262,560

Thus, Budgeted direct labor costs for June would be $1,262,560

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