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Question - Jolly Company has the following budgeted sales in units for the next three months:
Budgeted Sales in Units
May
2,900 units
June
6,300 units
July
4,100 units
Past experience has shown that the ending finished goods inventory for each month should be equal to 38% of the next month's expected sales in units. Additionally, it is known that every unit produced requires 2.5 direct labor hours to make and Jolly Company pays its direct labor workers $17.50 per hour.
Calculate the budgeted direct labor cost for June.
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