Whitman has a direct labor standard of 2 hours per unit of output.Each employee has a standard wage rate of $22.50 per hour.During July,Whitman paid $94,750 to employees for 4,445 hours worked.2,350 units were produced during July.What is the flexible budget amount for direct labor?
A)$105,750
B)$189,500
C)$200,025
D)$211,500

Question

Quizplus · Accepted Answer

The flexible budget amount for direct labor is calculated as the standard hours allowed for the actual output produced multiplied by the standard wage rate. For Whitman, this is 2 hours per unit * 2,350 units * $22.50 per hour = $105,750.

Whitman Has a Direct Labor Standard of 2 Hours Per