Zhang Industries budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate is $14 per hour. The indirect labor rate is $21.00 per hour. Compute the budgeted direct labor cost for July.
A) $6,300.
B) $6,510.
C) $9,450.
D) $9,765.
E) $16,275.

Question

Quizplus · Accepted Answer

The budgeted direct labor cost for July is calculated as follows: 310 units * 1.5 hours/unit * $14/hour = $6,510.

Zhang Industries Budgets Production of 300 Units in June and 310