Depasquale Corporation is working on its direct labor budget for the next two mo

Question

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 $8.40 per direct labor-hour. The production budget calls for producing 5,300 units in May and 5,700 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 $18,253.20 $19,630.80 $18,942.00 $37,884.00

Explanation / Answer

May June Total Required production 5300 5700 Direct labor hours per unit 0.41 0.41 Total direct labor hours 2173 2337 Direct labor cost per hour 8.4 8.4 Total direct labor cost 18253.2 19630.8 37884 Option 4 is correct

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