On January 1,Bandy Manufacturing Plans to Introduce a Product Called

On January 1,Bandy Manufacturing plans to introduce a product called Handy Dandy.The company plans to sell each unit of Handy Dandy for $25.00.Management has forecast the following in sales units for the first three months.Each unit of Handy Dandy requires 2 kg of Dingaling and 1 hour of direct labour.Management wants to end each month with a Handy Dandy inventory level equal to 10 per cent of the following month's sales,and a Dingaling inventory equal to 5 per cent of the following month's production.Dingaling can be purchased for $3 per kg and direct labour costs are estimated to be $5.00 per hour.What amount should be budgeted for direct labour in February?

A) $160 000
B) $146 000
C) $140 000
D) $134 000

Correct Answer:

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