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Category: Finance
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Experience:  Bachelors degree and CPA with Accounting experience.
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Walts Whistles manufactures referee whistles. At the beginning

Customer Question

Walt’s Whistles manufactures referee whistles. At the beginning of March, Walt’s has no completed whistles in inventory. Walt’s expects to produce and sell 10,000 whistles in March.
Each whistle requires a standard quantity of 0.05 direct labor hours. Walt doesn’t plan to have any whistles left in inventory at the end of March.
The standard rate per direct labor hour is $12.00. How much does Walt’s plan to spend on direct labor in March?
Submitted: 6 years ago.
Category: Finance
Expert:  JKCPA replied 6 years ago.

Thanks for your question.

10,000 whistles x 0.05 direct labor hours per whistle = 500 direct labor hours
500 direct labor hours x $12 per hour = $6,000 to be spent on direct labor in March.

Hope this helps!
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