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Welching Manufacturing produces two products, Big and Bigger. Welching expects to sell 20,000 units of Big and 10,000 units of Bigger. Welching plans on having an ending inventory of 4,000 units of Big and 2,000 units of Bigger. Currently, Welching has 1,000 units of Big in its inventory and 800 units of Bigger. Each product requires two labor operations: molding and polishing. Product Big requires one hour of molding time and one hour of polishing time. Product Bigger requires one hour of molding time and two hours of polishing time. The direct labor rate for molders is $20 per molding hour, and the direct labor rate for polishers is $25 per polishing hour.

Required: Prepare a direct labor budget in hours and dollars for each product.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M938327

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