Depasquale Corporation is working on its direct labor budget for the next two mo
ID: 2515414 • Letter: D
Question
Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.61 direct labor-hours. The direct labor rate is $8.40 per direct labor-hour. The production budget calls for producing 6,400 units in May and 6,800 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? Multiple Choice $67,636.80 $34,843.20 $33,818.40 $32,793.60
Explanation / Answer
Direct labor rate/unit=(0.61*$8.4)=$5.124
Total units produced=(6400+6800)=13200
Hence total combined direct labor cost=(5.124*13200)
which is equal to
=$67636.80
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