Looker Hats is planning to sell 1,000 felt hats, and 800 will be produced during June.Each hat requires.75 metres of felt and 1/2 hour of direct labour.Felt costs $5.00 per metre and employees of the company are paid $15 per hour.How much is the total amount of budgeted direct labour for June?
A)$9,750
B)$45,000
C)$6,000
D)$7,500

Question

Quizplus · Accepted Answer

The total direct labour hours required for producing 800 hats is 800 hats * 0.5 hours/hat = 400 hours. The cost of direct labour is then 400 hours * $15/hour = $6,000.

Looker Hats Is Planning to Sell 1,000 Felt Hats, and 800