Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

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.
-If the budgeted cash disbursements for manufacturing overhead for December total $105,000,then the budgeted direct labor-hours for December must be:

A) 6,000 direct labor-hours
B) 21,000 direct labor-hours
C) 9,000 direct labor-hours
D) 3,000 direct labor-hours

Correct Answer:

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