Answer:
The correct answer for quarter 1 is $120,000, for quarter 2 is $168,000 and for 6 months is $288,000.
Explanation:
According to the scenario, computation of the given data are as follows:
Direct labor cost for Quarter 1 = Total Required Direct Labor Hours × Direct Labor Wage
Where, Total Required Direct Labor Hours = 5,000 × 1.6 hours = 8,000 hours
So, Direct labor budget for Quarter 1 = 8,000 × $15 = $120,000
Direct labor budget for Quarter 2 = Total Required Direct Labor Hours × Direct Labor Wage
Where, Total Required Direct Labor Hours = 7,000 × 1.6 hours = 11,200 hours
So, Direct labor budget for Quarter 2 = 11,200 × $15 = $168,000
So, Direct labor budget for 6 months = Direct labor budget for Quarter 1 + Direct labor budget for Quarter 2
= $120,000 + $168,000
= $288,000.
