Calculate the budgeted production for February

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Question - Kromelow Company manufactures lamp shades. Budgeted sales of lamp shades are 3,200 units in January, 4,800 units in February, and 4,000 units in March. Management believes that an ending inventory equal to 20% of the next month's sales strikes the appropriate balance between excessive and insufficient inventories. Each lamp shade requires 1.5 direct labor hours. The average direct labor rate is $10.00 per hour.

Required -

Calculate the budgeted production (in units) for February.

Calculate the budgeted direct labor cost for February.

Reference no: EM132493143

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