Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget:

In addition, Nevis produces 5,000 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Nevis' cost per labor hour is $15.
- Direct labor cost for August would be budgeted at:

Question

Nevis' production data for a new deluxe product were taken from the most recent quarterly production budget:

In addition, Nevis produces 5,000 units a month of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Nevis' cost per labor hour is $15.
- Direct labor cost for August would be budgeted at:

Quizplus · Accepted Answer

Direct labor cost is budgeted at $25 per hour. In August, there are 1,250 hours of direct labor budgeted. Therefore, direct labor cost for August would be budgeted at $25 x 1,250 = $187,125.

Nevis' Production Data for a New Deluxe Product Were Taken