Question

g The budgeted production of​ Capricorn, Inc. is 15 comma 000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $ 70 per hour. Calculate the budgeted cost of direct labor for the month.​ (Round any intermediate calculations to the nearest cent and your final answer to the nearest​ dollar.) A. $ 225 comma 000 B. $ 35 comma 000 C. $ 1 comma 050 comma 000 D. $ 525 comma 000

Answer 1

Answer:

D. $525,000

Explanation:

budgeted production = 15,000 units/month

unit production time required = 30 minutes => 0.5 hours

direct labor rate = $70 per hour

Budgeted cost of direct labor for the month = 15,000 * 0.5 * 70

= $525,000