21) Depasquale Corporation is working on its direct labor budget for the next tw

Question

21) Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.41 direct labor-hours. The direct labor rate is $8.10 per direct labor-hour. The production budget calls for producing 5,000 units in May and 5,400 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? A) $16,605.00 B) $17,933.40 C) $ 1 7,269.20 D) $34,538.40

Explanation / Answer

Direct labor hour/unit=($8.1*0.41)=$3.321/unit

Total units produced=(5000+5400)=10400 units

Hence total combined direct labor cost=(3.321*10400)

which is equal to

=$34538.40

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