Giles Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May?
A) 579,600.
B) 590,400.
C) 601,200.
D) 648,000.

Question

Quizplus · Accepted Answer

Direct labor cost = (Number of units to be produced x Direct labor time per unit x Direct labor cost per hour)

= (16,700 x 3 x $12)

= $601,200.

Giles Company Is Preparing Its Direct Labor Budget for May