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 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

For July, the budgeted direct labor cost 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