Pell Manufacturing is preparing its direct labor budget for May. Projections for the month are that 33400 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12 what is the total budgeted direct labor cost for May?
A) 1159200.
B) 1180800.
C) 1202400.
D) 1296000.

Question

Quizplus · Accepted Answer

Total direct labor hours = (33400 units) x (3 hours per unit) = 100200 hours

Direct labor cost per hour is given as $12

Total budgeted direct labor cost = (Total direct labor hours) x (Direct labor cost per hour) = (100200 hours) x ($12/hour) = $1,202,400.

Therefore, the correct answer is C, $1,202,400.

Pell Manufacturing Is Preparing Its Direct Labor Budget for May