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Mazyrski [523]
3 years ago
11

Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per h

our. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year. In June the company has budgeted to produce 22,000 Pods. The finished goods inventory on June 1 and June 30 were budgeted at 500 and 800 units, respectively. Budgeted direct labor costs incurred in June would be:
A. $470,400
B. $295,680
C. $240,000
D. $211,200
Business
1 answer:
Ganezh [65]3 years ago
3 0

Answer:

Total direct labor costs= $295,680

Explanation:

Giving the following information:

Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour.

Production= 22,000 Pods.

<u>First, we need to calculate the total direct labor hours required:</u>

Total direct labor hours= 22,000*1.4= 30,800 hours

<u>Now, the total direct labor costs:</u>

Total direct labor costs= 30,800*9.6

Total direct labor costs= $295,680

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