Reference no: EM13513041
Long Beach Tools Corporation has the following direct labor requirements for the production of a machine tool set:
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Direct Labor
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Required Time
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Hourly Rate
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Machining
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6
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10
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Assembly
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10
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8
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Forecasted sales for June, July, August, and September are 6,000, 5,000, 8,000, and 7,000 units, respectively. June 1 beginning inventory of the tool set was 1,500. The desired ending inventory each month is one-half of the forecasted sales for the following month.
1. Prepare a production budget for the months of June, July, and August.
2. Develop a direct labor budget for the months of June, July, and August and for each type of direct labor.
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