Sudler Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May.Each box of tile requires 44 kilograms of clay mix and a quarter hour of direct labour.Clay mix costs $0.50 per kilogram and employees of the company are paid $15.00 per hour.Manufacturing overhead is applied at a rate of 110% of direct labour costs.Sudler has 2,600 kilograms of clay mix in beginning inventory and wants to have 3,000 kilograms in ending inventory.What is the total amount to be budgeted for direct labour for the month?
A)$2,175
B)$8,700
C)$2,250
D)$34,800

Question

Quizplus · Accepted Answer

Direct labour cost = (580 boxes x 0.25 hours per box) x $15.00 per hour = $2,175

Sudler Production Is Planning to Sell 600 Boxes of Ceramic