Milano Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.50 direct labor-hours. The direct labor rate is $9.80 per direct labor-hour. The production budget calls for producing 6,400 units in October and 6,300 units in November. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
A)$30,870
B)$31,360
C)$62,230
D)$31,115

Question

Quizplus · Accepted Answer

Step 1: Calculate the total direct labor-hours required for each month

October: 6,400 units x 0.50 DLH per unit = 3,200 direct labor-hours

November: 6,300 units x 0.50 DLH per unit = 3,150 direct labor-hours

Step 2: Calculate the total direct labor cost for each month

October: 3,200 DLH x $9.80 per DLH = $31,360

November: 3,150 DLH x $9.80 per DLH = $30,870

Step 3: Add the total direct labor costs for both months

Total = $31,360 + $30,870 = $62,230

Therefore, the correct answer is (C) $62,230.

Milano Corporation Is Working on Its Direct Labor Budget for the Next