Brawny Corporation manufactures benches.Each bench requires .50 direct labor hours in its production.Brawny Corporation has a direct labor rate of $15 per direct labor hour.The production budget shows that Brawny Corporation plans to produce 1,000 benches in March and 1,200 benches in April.What is the total combined direct labor cost that should be budgeted for March and April?

Question

Quizplus · Accepted Answer

To calculate the total direct labor cost, we need to multiply the direct labor hours per bench by the number of benches produced in each month and then by the direct labor rate.

For March:

Direct labor hours per bench = 0.50
Number of benches = 1,000 
Direct labor rate = $15

Total direct labor cost for March = 0.50 x 1,000 x $15 = $7,500

For April:

Direct labor hours per bench = 0.50
Number of benches = 1,200 
Direct labor rate = $15

Total direct labor cost for April = 0.50 x 1,200 x $15 = $9,000

Therefore, the total combined direct labor cost for March and April is $7,500 + $9,000 = $16,500.

Hence, the best choice is D.

Brawny Corporation Manufactures Benches