Wallace Company makes and sells a single product.Each unit requires two hours of labor at $8 per hour.The company has budgeted to sell 8,000 units and produce 10,000 units during the current month.Each product requires three pounds of material for each unit produced.Budgeted direct labor costs for the current month would be:
A)$160,000
B)$128,000
C)$80,000
D)$192,000
E)$64,000

Question

Quizplus · Accepted Answer

Budgeted direct labor costs = 8,000 units * 2 hours per unit * $8 per hour = $128,000

Wallace Company Makes and Sells a Single Product