Staci Pearce is preparing a direct labor budget.Her sales budget shows total sales units of 15,000 and sales dollars of $45,000. The direct materials purchases budget shows materials to be purchased of 25,000 units and budgeted purchases cost of $18,750. The production budget indicates a total of 25,000 units to be produced. Standard direct labor hours per unit is .50 and the standard average wage rate is $10. What is budgeted direct labor cost?
A) $125,000
B) $143,750
C) $188,750
D) None of these ans choices are correct.

Question

Staci Pearce is preparing a direct labor budget.Her sales budget shows total sales units of 15,000 and sales dollars of $45,000. The direct materials purchases budget shows materials to be purchased of 25,000 units and budgeted purchases cost of $18,750. The production budget indicates a total of 25,000 units to be produced. Standard direct labor hours per unit is .50 and the standard average wage rate is $10. What is budgeted direct labor cost?
A) $125,000 
B) $143,750
C) $188,750
D) None of these ans choices are correct.

Quizplus · Accepted Answer

25,000 x 0.50 x $10 = $125,000

Staci Pearce Is Preparing a Direct Labor Budget