Movers Company manufactures sneakers. The production of their new sneaker for the coming three months is budgeted as follows:
August 30,000
September 50,000
October 35,000
Each sneaker requires 2 hours of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $10 per direct labor hour plus fixed overhead of $4,500. What is the direct labor cost budgeted for September?
a.$1,400,000
b.$1,500,000
c.$750,000
d.$625,000
e.$820,000
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