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HDD Company manufactures toy airplanes. Information on HDD Company's labor costs follow:
Sales commissions Administration Indirect factory labor Direct factory labor
$5 per plane $10,000 per month $3 per plane $5 per plane
The following information applies to the upcoming month of July for HDD Company:
Budgeted production 1,200 units
Budgeted sales 1,000 units
Problem 1: What amount of budgeted labor cost would appear in the July selling, general, and administrative expense budget? What is HDD's budgeted factory labor cost for July?
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