Pell manufacturing is preparing its direct labor budget for may. projections for the month are that 33,400 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? 1,296,000. 1,202,400. 1,159,200. 1,180,800.

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Business

Cherokee

21 May, 15:58

Pell manufacturing is preparing its direct labor budget for may. projections for the month are that 33,400 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? 1,296,000. 1,202,400. 1,159,200. 1,180,800.

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Coby · Answer 1

1,202,400 Since each unit takes 3 hours of direct labor at a cost of $12 per hour, that means that each unit costs 3 * $12 = $36. Now since there's a projected 33,400 units to be produced in May at a cost of $36 per unit, that means that the projected cost of direct labor is 33,400 * $36 = $1,202,400. This value agrees exactly with choice #2.