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Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

Question 19

Multiple Choice

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase. -The company has budgeted to produce 28,000 units of Product T in June.The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units,respectively.Budgeted direct labor costs for June would be: A) $294,000 B) $441,000 C) $444,150 D) $437,850 At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-The company has budgeted to produce 28,000 units of Product T in June.The finished goods inventories on June 1 and June 30 were budgeted at 800 and 600 units,respectively.Budgeted direct labor costs for June would be:


A) $294,000
B) $441,000
C) $444,150
D) $437,850

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