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Carson Products Inc

Question 10

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Carson Products Inc. manufactures LEDs (light emitting diodes) for use in vehicles. On September 30, the company had 5,000 LED units in inventory. The company's policy is to maintain a LED ending inventory equal to 25% of next month's expected sales. In addition, each LED manufactured requires 2 minutes of assembly and inspecting time at a cost of $.30 per minute. The company expects the following sales activity for the fourth quarter of the year:
Carson Products Inc. manufactures LEDs (light emitting diodes) for use in vehicles. On September 30, the company had 5,000 LED units in inventory. The company's policy is to maintain a LED ending inventory equal to 25% of next month's expected sales. In addition, each LED manufactured requires 2 minutes of assembly and inspecting time at a cost of $.30 per minute. The company expects the following sales activity for the fourth quarter of the year: What is the projected direct labor cost for November? A) $72,000 B) $63,000 C) $60,000 D) $57,000 What is the projected direct labor cost for November?


A) $72,000
B) $63,000
C) $60,000
D) $57,000

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