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20) An equipment supply manager at a large outlet needs to prepare a Direct Labor...

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Accounting

20) An equipment supply manager at a large outlet needs to prepare a Direct Labor Budget for one of its products. The budgeted sales amount to 5,200 units and each unit of this product requires 0.5 labor hours to complete. The target ending finished goods inventory is 700 units, and the beginning finished goods inventory shows 1,000 units. Compute the Direct Labor Budget in dollars, assuming an hourly rate of $15.

A. $36,750

B. $41,250

C. $51,750

D. $31,500

E. $73,500

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