Nascar company manufactures an innovative automobile

Reference no: EM13613082

Nascar Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending inventory for the first quarter will be 39,400 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 230,000 units; third quarter, 489,000 units; and fourth quarter, 239,000 units. Company policy calls for the ending inventory of a quarter to equal 34% of the next quarter's budgeted sales. Each transmission requires 3.5 direct labor hours, at a cost of $17.4 per hour.Prepare a direct labor budget for the second quarter.

Reference no: EM13613082

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