Sellars Inc What Is the Projected Direct Labour Cost for August?
A)

Sellars Inc.manufactures widgets.At 30 June,the company had 2000 widgets in inventory.The company's policy is to maintain a widget ending inventory equal to 10 per cent of next month's sales.In addition,each widget manufactured requires 6 minutes of assembly and inspecting time at a cost of $.25 per minute.
The company expects the following sales activity for the third quarter of the year:
$\begin{array}{ll}\text { July } & 25000 \text { units } \\\text { August } & 38000 \text { units } \\\text { September } & 30000 \text { units }\end{array}$
What is the projected direct labour cost for August?

A) $55 800
B) $57 000
C) $61 500
D) $58 200

Correct Answer:

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