For July, White Corporation has budgeted production of 6,000 units. Each unit requires 0.10 direct labor-hours at a cost of $8.50 per direct labor-hour. How much will White Corporation budget for labor in July?
A)$51,000
B)$5,160
C)$600
D)$5,100

Question

Quizplus · Accepted Answer

To calculate the budgeted labor cost, we need to first find out the total direct labor-hours required for the production of 6,000 units:

Direct labor-hours per unit = 0.10
Total units to be produced = 6,000
Total direct labor-hours required = 0.10 x 6,000 = 600

Now we can calculate the labor cost:

Direct labor cost per hour = $8.50
Total direct labor-hours required = 600
Total labor cost = 8.50 x 600 = $5,100

Therefore, the budgeted labor cost for July is $5,100, which is option D.

For July, White Corporation Has Budgeted Production of 6,000 Units