Three Bears Manufacturing produces an auto - quartz watch movement called OM362. Three Bears expects...
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Three Bears Manufacturing produces an auto - quartz watch movement called OM362. Three Bears expects to sell 20,000 units of OM362 and to have an ending finished inventory of 7,000 units. Currently, it has a beginning finished inventory of 1,200 units. Each unit of OM362 requires two labor operations, three labor hour(s) of assembling and three labor hour(s) of polishing. The direct labor rate for assembling is $14 per assembling hour and the direct labor rate for polishing is $17.50 per polishing hour. The expected cost of direct labor for OM362 is A. $2,551,500 B. $1,890,000 C. $2,438,100 OD. $2,003,400
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