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Spinning Wheel Manufactures Leather Accessories Through a Labor-Intensive Manual Process

Question 63

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Spinning Wheel manufactures leather accessories through a labor-intensive manual process. Workers are paid $10/hour. Each handbag takes 2 hours to sew, and each wallet requires 0.5 hours of total labor to complete. Management has budgeted for 1,000 items to be produced this period, with a ratio of 1:3 of handbags to wallets.
What is the total amount budgeted to be paid in Direct Labor wages for the period?

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Handbags:
Production: 1 handbag / (1+3) ...

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