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Olde Clothiers Manufactures Vintage Clothing Through a Labor-Intensive Manual Process

Question 51

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Olde Clothiers manufactures vintage clothing through a labor-intensive manual process. Workers are paid $30/hour. Each sweater takes 2.5 hours to knit, and each shirt requires 1 hour of total labor to complete. Management has budgeted for 1,500 items to be produced this period, with a ratio of 3:2 of shirts to sweaters. Olde Clothiers pays wages as incurred.
What is the total amount budgeted to be paid in Direct Labor wages for the period?

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Shirts:
Production: 3 shirts / (3+2) ite...

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