Delaware Corp.prepared a master budget that included $21,360 for direct materials,$33,600 for direct labor,$18,000 for variable overhead,and $46,440 for fixed overhead.Delaware Corp.planned to sell 4,000 units during the period,but actually sold 4,300 units.How much would direct labor cost be on a flexible budget for the period based on actual sales?
A)$14,448
B)$31,256
C)$33,600
D)$36,120

Question

Quizplus · Accepted Answer

To calculate the direct labor cost on a flexible budget based on actual sales, we need to use the formula:
Flexible budget direct labor cost = Actual number of units sold x Direct labor cost per unit
Direct labor cost per unit can be found using the information given in the question:
Direct labor cost per unit = Total direct labor cost / Planned number of units
= $33,600 / 4,000 units
= $8.40 per unit

Using this, we can calculate the direct labor cost on a flexible budget based on actual sales:
Flexible budget direct labor cost = 4,300 units x $8.40 per unit
= $36,120

Therefore, the answer is D.